Cathay Financial Holdings Financial Cathay

Integrity, Accountability, Creativity Cathay Financial Holdings Financial Cathay

Contents

Letter to Shareholders ...... 04 Overview of Cathay Financial Holding Co., Ltd Company Profle ...... 05 Organizational Chart ...... 06 Group Affliates ...... 06 Board of Directors, Independent Directors and Key Management ...... 07 Capital and Shares ...... 07 2015 Business Plan ...... 08 Contents Overview of Subsidiaries Cathay Life Insurance Co., Ltd. Cathay Securities Message from the President ...... 10 Investment Trust Co., Ltd. Message from the Chairman ...... 30 Company Profle ...... 11 Company Profle ...... 31 Business Scope ...... 13 Business Scope ...... 33 2015 Business Plan and Operational Targets .... 14 2015 Business Plan and Operational Targets .... 33

Cathay United Bank Co., Ltd. Cathay Venture Inc. Message from the Chairman ...... 16 Company Profle ...... 34 Company Profle ...... 17 Business Scope ...... 34 Business Scope ...... 19 2015 Business Plan ...... 35 2015 Business Plan and Operational Targets .... 20

Cathay Century Insurance Co., Ltd. Overseas Branches and Ofces ...... 36 Message from the Chairman ...... 22 Te Year in Review 2014 ...... 38 Company Profle ...... 23 Honors and Accolades ...... 40 Business Scope ...... 24 2015 Business Plan and Operational Targets .... 25 Financial Report ...... 42

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Cathay Securities Corporation Message from the Chairman ...... 26 Company Profle ...... 27 Business Scope ...... 28 2015 Business Plan and Operational Targets .... 29 2014 Annual Report 2014 Annual Letter to Shareholders

The global economy steadily got back on track in 2014. In spite of increasingly volatile fnancial markets, Cathay Financial Holding as a whole turned in a strong performance thanks to the concerted efforts of our colleagues.

*O $BUIBZ'JOBODJBM)PMEJOHTSFDPSEFESFDPSECSFBLJOHDPOTPMJEBUFEQSPåUBGUFSUBYPG64CJMMJPO BOEFBSOJOHTQFSTIBSFPG/50VSNBKPSTVCTJEJBSJFT $BUIBZ-JGF*OTVSBODFBOE$BUIBZ6OJUFE#BOL BMTP SFDPSEFESFDPSECSFBLJOHQSPåUTGPSUIFZFBS$BUIBZ-JGF*OTVSBODFSFDPSEFEBDPOTPMJEBUFEQSPå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secured its position as the second largest non-life insurance company in the market in terms of premium income. $BUIBZ4FDVSJUJFT*OWFTUNFOU5SVTUSFDPSEFE64CJMMJPOJOBTTFUTVOEFSNBOBHFNFOU NBLJOHJUUIFMBSHFTU TFDVSJUJFTJOWFTUNFOUUSVTUDPNQBOZJO5BJXBO$BUIBZ4FDVSJUJFTSFDPSEFESFDPSECSFBLJOHQSPåUBGUFSUBYBTXFMM as record-breaking earnings per share in 2014. All business operations showed stable growth.

Cathay Financial Holdings Financial Cathay *OUFSNTPGPWFSTFBTFYQBOTJPO XFDPOUJOVFEUPFYQBOEPVSQSFTFODFBOEEFWFMPQOFXCVTJOFTTFTJO PWFSTFBTNBSLFUT*O$IJOB UIF4IBOHIBJ#SBODIPG$BUIBZ6OJUFE#BOLSFQPSUFESFDPSEIJHIQSPåUTJO The Shanghai Minhang Sub-Branch, Shanghai Pilot Free Trade Zone Sub-Branch, and Qingdao Branch opened for business in 2014. Approval has also been received from the Financial Supervisory Commission to open a Shenzhen Branch and a Shanghai Jiading Sub-Branch. Plans are also in place to apply for the etablishment of a TVCTJEJBSZCBOLJO$IJOBBOEUPDPOUJOVFUPFYQBOEUIFTDBMFPGPVSCVTJOFTTBOECSBODIOFUXPSLJOUIF(SFBUFS $IJOBSFHJPOJOPSEFSUPQSPWJEFNPSFDPNQSFIFOTJWFTFSWJDFTUPPVSDVTUPNFST3FHBSEJOHUIFJOTVSBODF CVTJOFTT $BUIBZ-VKJB[VJ-JGF*OTVSBODFIBEPGGJDFT IFBEPGGJDFBOECSBODIFT BOETBMFTBOETFSWJDF BHFODJFTBDSPTT$IJOB XIJMF$BUIBZ$FOUVSZ*OTVSBODFIBTFTUBCMJTIFEPGåDFTBOEFYUFOEFEJUTSFBDIJOUP NBKPSQSPWJODFTJODFOUSBMXFTUFSO$IJOBBTPGZFBSFOE*OUIFGVUVSF XFXJMMGPDVTPVSFGGPSUTPOJNQSPWJOH UIFQSPEVDUJWJUZPGPVSTBMFTGPSDF BEKVTUJOHPVSPSHBOJ[BUJPOBMTUSVDUVSFBOEFYQBOEJOHPVSQSFTFODFUPEFWFMPQ brand recognition in the China market.

"TGPSPVSFYQBOTJPOJO4PVUIFBTU"TJB $BUIBZ6OJUFE#BOLBMSFBEZIBTTFUVQPGåDFTJOFJHIUPVUPGUFO "4&"/DPVOUSJFT JODMVEJOH7JFUOBN $BNCPEJB 5IBJMBOE 4JOHBQPSF .BMBZTJB UIF1IJMJQQJOFT #VSNB BOE -BPT"QQSPWBMIBTCFFOSFDFJWFEGSPNUIFMPDBMSFHVMBUPSJO*OEPOFTJBUPPQFOBSFQSFTFOUBUJWFPGåDFJO+BLBSUB *OEPOFTJB BOEGSPNUIF'JOBODJBM4VQFSWJTPSZ$PNNJTTJPOUPPQFOB.BOJMB#SBODIJOUIF1IJMJQQJOFT"TB SFTVMU $BUIBZ6OJUFE#BOLXJMMCFBCMFUPGVSUIFSFYUFOEJUTSFBDIJO4PVUIFBTU"TJBBOECVJMEBOFYUFOTJWF PWFSTFBTPQFSBUJPOBMQMBUGPSN$BUIBZ-JGF*OTVSBODFQMBOTUPNBLFFRVJUZJOWFTUNFOUTJOCBOLTJONPSF EFWFMPQFE"4&"/DPVOUSJFT TVDIBTUIF1IJMJQQJOFTBOE*OEPOFTJB UPTUSFOHUIFO$BUIBZ'JOBODJBM)PMEJOHTh CVTJOFTTQPSUGPMJP'VSUIFSNPSF $BUIBZ-JGF*OTVSBODFIBTFTUBCMJTIFEBQSFTFODFJOTJYNBKPSQSPWJODFTBOE NVOJDJQBMJUJFTJO7JFUOBNBOE$BUIBZ$FOUVSZ*OTVSBODFIBTBMTPTFUVQBIFBEPGåDFBOECSBODIPGåDFTJOCPUI )P$IJ.JOI$JUZBOE)BOPJ5IF7JFUOBNJOTVSBODFNBSLFUQSFTFOUTTJHOJåDBOUHSPXUIQPUFOUJBMGPSVT

We have also made signifcant progress in building our asset management business. In addition to Cathay $POOJOH"TTFU.BOBHFNFOU-JNJUFEJO)POH,POHBOE$%#4$BUIBZ"TTFU.BOBHFNFOU PVSKPJOUWFOUVSF JO$IJOB $BUIBZ'JOBODJBM)PMEJOHTQMBOTUPBDRVJSFUIF64DPNQBOZ $POOJOH)PMEJOHT$PSQ5IJTJTBO JNQPSUBOUTUFQUPXBSETCVJMEJOHBHMPCBMBTTFUNBOBHFNFOUQMBUGPSNTQBOOJOHUIF64 &VSPQF BOE"TJBBOE realizing our core strategy of having three engines of growth - "Insurance + Banking + Asset Management".

We have identifed three engines of growth - "Insurance + Banking + Asset Management" - as our core strategy to seek continued growth and work towards our goal of becoming a leading financial institution in UIF"TJB1BDJåDSFHJPO-PPLJOHGPSXBSEUP $BUIBZ'JOBODJBM)PMEJOHTXJMMDPOUJOVFUPGPDVTPOEFMJWFSJOH steady growth and maintaining our market leading position by adhering to our core values of "Integrity, Accountability and Creativity" as we strive to create value for our shareholders who have continued to support us over the past years.

Chairman Hong-Tu Tsai

Overview of Cathay Financial Holding Co., Ltd

Organizational Chart

Shareholders Audit Committee

Remuneration Committee

Board of Directors Corporate Sustainability Committee

Strategic Management Committee

Chairman Operations Management Committee

Service Quality Committee

Risk Management Committee

President Personal Information Management Committee

Cathay Financial Holdings Financial Cathay Auditing Strategic Marketing Economic Financial Administration Risk Mgmt. Information Project Div. Planning Dept. Planning Div. Research Div. Div. Div. Div. Div. Planning Div. Compliance Dept. Public Relations Dept. Investors Relations Dept. Integrated Marketing Dept. Direct Marketing Planning Dept. Accounting Dept. Financial Planning Dept. Administration Dept. Legal Dept.

Group Affliates

Cathay Financial Holding Co., Ltd.

Cathay United Cathay Century Cathay Life Cathay Cathay Securities Cathay Securities Cathay Conning Bank Co., Ltd. Insurance Co., Ltd. Insurance Co., Ltd. Venture Inc. Corporation Investment Trust Co., Ltd. Asset Management Co., Ltd.

Indovina Bank Cathay Lujiazui Life Insurance Cathay Insurance Cathay Futures Co., Ltd. Limited Co.,Ltd. (China) Company Limited

Seaward Card Cathay Insurance Cathay Securities Investment Cathay Investment Consulting Co., Ltd. (Vietnam) Co., Ltd. Consulting Co., Ltd. (Shanghai) Co., Ltd.

Cathay United Bank Cathay Insurance (Cambodia) (Bermuda) Co., Ltd. Corporation Limited Cathay Life Insurance (Vietnam) Co., Ltd.

Lin Yuan (Shanghai) Real Estate Co., Ltd.

6 Board of Directors, Independent Directors and Key Management

Name Education Experience Hong-Tu Tsai +% 4PVUIFSO.FUIPEJTU6OJWFSTJUZ 64" $IBJSNBO $BUIBZ-JGF*OTVSBODF Cheng-Ta Tsai #" $IJOFTF$VMUVSF6OJWFSTJUZ .BOBHJOH%JSFDUPS $BUIBZ-JGF*OTVSBODF Cheng-Chiu Tsai ." ,FJP6OJWFSTJUZ +BQBO Chairman, Cathay Century Insurance $IBJSNBOBOE$IJFG&YFDVUJWF0GåDFS $*5*$ 1FUFS7,XPL 1I% 6$#FSLFMFZ 64" ,"8")#BOL-JNJUFE $IBJSNBO $*5*$3FTPVSDFT)PMEJOHT-JNJUFE Board of Directors Chi-Wei Joong #" ,FBO$PMMFHFPG/FX+FSTFZ 64" President, CMB Credit Card Center Tsu-Pei Chen #" /BUJPOBM$IFOHDIJ6OJWFSTJUZ $IBJSNBO $BUIBZ6OJUFE#BOL Tiao-Kuei Huang .4 /BUJPOBM5TJOH)VB6OJWFSTJUZ 7JDF$IBJSNBO $BUIBZ-JGF*OTVSBODF $IBOH,FO-FF .#" 6OJWFSTJUZPG1FOOTZMWBOJB 64" 1SFTJEFOU $BUIBZ6OJUFE#BOL Ming-Ho Hsiung ." 6OJWFSTJUZPG*PXB 64" 1SFTJEFOU $BUIBZ-JGF*OTVSBODF Jeff Chang .4 /BUJPOBM$IFOH,VOH6OJWFSTJUZ Chairman, Cathay Securities Investment Trust

Name Education Experience Chairman, SinoPac Financial Holdings Min-Houng Hong 1I%.JDIJHBO4UBUF6OJWFSTJUZ 64" $IBJSNBO 1BOBTPOJD5BJXBO$P -UE Director, First Financial Holdings Tsing-Yuan Hwang 1I%$BOEJEBUF /JIPO6OJWFSTJUZ +BQBO Independent %JSFDUPS )PO)BJ1SFDJTJPO*OEVTUSZ$P -UE Directors Country Head of JPMorgan Taiwan and Hong Andrew Ming-Jian .#" #BSVDI$PMMFHF $JUZ6OJWFSTJUZPG Kong Kuo /FX:PSL 64" Senior Advisor for Greater China, The #MBDLTUPOF(SPVQ ), -JNJUFE

Position Name Education Executive Offcer Chairman Hong-Tu Tsai +% 4PVUIFSO.FUIPEJTU6OJWFSTJUZ 64"

Position Name Education President $IBOH,FO-FF .#" 6OJWFSTJUZPG1FOOTZMWBOJB 64" )FBEPG1SPKFDU1MBOOJOH%JW Tzung-Han Tsai +% (FPSHFUPXO6OJWFSTJUZ 64" 4FOJPS&YFDVUJWF71 $IJFG"VEJUPS4FOJPS&YFDVUJWF71 Ching-Ming Pan .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ $IJFG'JOBODJBM0GåDFS4FOJPS&YFDVUJWF71 Grace Chen .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ )FBEPG.BSLFUJOH1MBOOJOH%JW4FOJPS David P.Sun .#" )BSWBSE6OJWFSTJUZ 64" &YFDVUJWF71 4FOJPS&YFDVUJWF71 "MBO-FF .#" /BUJPOBM5BJXBO6OJWFSTJUZ Key $IJFG*OWFTUNFOU0GåDFS4FOJPS&YFDVUJWF71 Sophia Cheng .4 (PMEFO(BUF6OJWFSTJUZ 64" Managers )FBEPG4USBUFHJD1MBOOJOH%JW M.B.A.,Massachusetts Institute of Chung-Yi Teng 4FOJPS&YFDVUJWF71 5FDIOPMPHZ 64" $IJFG3JTL0GåDFS4FOJPS&YFDVUJWF71 Po-Tsang Hsieh ##" $IJOFTF$VMUVSF6OJWFSTJUZ Ph. D., Weatherhead School of $IJFG*OGPSNBUJPO0GåDFS Chia-Sheng Chang .BOBHFNFOUBU$BTF8FTUFSO3FTFSWF 4FOJPS&YFDVUJWF71 6OJWFSTJUZ 64" M.B.A.,Massachusetts Institute of )FBEPG"ENJOJTUSBUJPO%JW&YFDVUJWF71 Deh-Yen Weng 5FDIOPMPHZ 64" --. 6OJWFSTJUZPG-POEPO 4DIPPMPG $IJFG$PNQMJBODF0GåDFS&YFDVUJWF71 Judie Hsu Oriental and African Studies

Capital and Shares

Type of stock Number of shares (000) Amount ($000) Report 2014 Annual Common stock 12,563,210 64

7 Overview of Cathay Financial Holding Co., Ltd

2015 Business Plan

$BUIBZ'JOBODJBM)PMEJOHTJTDPNNJUUFEUPNBYJNJ[JOHWBMVFGPSJUTTIBSFIPMEFST DVTUPNFSTBOEFNQMPZFFT In the face of rapid market changes and intense competition, Cathay Financial Holdings stands on strong, TPMJEHSPVOEBOEDPOUJOVFTUPGPDVTPOJOUFSOBMUSBOTGPSNBUJPOBOEJOOPWBUJPOBOEPVUXBSEFYQBOTJPO0VS CVTJOFTTQMBOJTPVUMJOFECFMPX

Transform the organization and optimize our business structure:

Guided by the core values of "Integrity, Accountability and Creativity," Cathay Financial Holdings will continue to optimize organizational operations and to implement transformative measures, such as a performance-oriented management culture, remuneration systems and talent management, as the basis for sustainable development.

3FHBSEJOHPQUJNJ[JOHUIFCVTJOFTTTUSVDUVSF PVSCBOLJOHPQFSBUJPOTXJMMEFWFMPQEJHJUBMåOBODJBMTPMVUJPOT to meet the needs of the more youthful demographic, while continuing to focus on trade related services

Cathay Financial Holdings Financial Cathay and strengthen our regional competitive niche. Our insurance operations will be value oriented, and invest in organizational initiatives in order to develop even better trained agents. The asset management business will be built on the operations at Conning Holdings Corp., and support our "three-engine" strategy.

Expand regional operations and achieve the vision of being a leading fnancial institution in the Asia- Pacifc region:

Guided by the vision of being "a leading fnancial institution in the Asia-Pacifc region," Cathay Financial )PMEJOHTXJMMDPOUJOVFUPFYQBOEJO$IJOBBOEUIF"TJB1BDJåDSFHJPOCZBEWBODJOHXJUIFRVBMFNQIBTJT POFRVJUZJOWFTUNFOUTBOEBDRVJTJUJPOT0VSHPBMJTUPDPOOFDUPWFSTFBTPGGJDFTTUSBUFHJDBMMZUPDSFBUFB platform for trade fnancing and cash fow management.

3FHBSEJOHPQFSBUJPOTJO$IJOB $BUIBZ'JOBODJBM)PMEJOHTXJMMDPOUJOVFUPBQQMZGPSNPSFCSBODIFTBOE TVCCSBODIFTXIJMFBQQMZJOHUPFTUBCMJTIBCBOLJOHTVCTJEJBSZ$PNCJOFEXJUIPVSFYJTUJOHMJGFJOTVSBODF operations, property and casualty insurance and asset management entities in China, Cathay Financial )PMEJOHTXJMMTFFLBDPPSEJOBUFEFYQBOTJPOJO$IJOB

3FHBSEJOHPWFSTFBTNBSLFUT $BUIBZ'JOBODJBM)PMEJOHTIBTBDRVJSFEBTUBLFJO3J[BM$PNNFSDJBM#BOLJOH $PSQPSBUJPO 3$#$ BOE15#BOL.BZBQBEB*OUFSOBUJPOBM #BOL.BZBQBEB $BUIBZ'JOBODJBM)PMEJOHT XJMMBMTPIBWFBOFWFONPSFEFåOFEQSFTFODFJOUIFCBOLJOHTFDUPSJO4PVUIFBTU"TJBXIFOUIF7JFOUJBOF #SBODIJO-BPTBOEUIFSFQSFTFOUBUJWFPGåDFJO#VSNBPQFO$BUIBZ'JOBODJBM)PMEJOHTXJMMDPOUJOVFUPMPPL GPSPQQPSUVOJUJFTGPSFYQBOTJPOJOPUIFSNBSLFUT*OBEEJUJPO $BUIBZ'JOBODJBM)PMEJOHTBOOPVODFEUIF BDRVJTJUJPOPGUIF64DPNQBOZ $POOJOH)PMEJOHT$PSQ BUUIFFOEPG5IFDPNQBOZXJMMCVJMEPOUIF BDRVJTJUJPOUPCVJMEBHMPCBMBTTFUNBOBHFNFOUQMBUGPSNTQBOOJOHUIF64 &VSPQF BOE"TJB

$BUIBZ'JOBODJBM)PMEJOHTSFDFJWFEUIF5BJXBO$43"XBSE Cathay Financial Holdings received the 2014 Corporate Citizenship Award from Commonwealth Magazine.

8 Capital Allocation Plan

1. Continually monitor capital allocation of the Group and make timely adjustments

In response to the drastic changes in global fnancial markets in recent years, we will pay close attention UPEFWFMPQNFOUTJOHMPCBMNBSLFUTBOEUIFJSQPUFOUJBMJNQBDUPOUIFDBQJUBMBEFRVBDZPGFBDITVCTJEJBSZ Taking into consideration the Group’s growth strategies, stock dividend policy, outside capital and capital needs of subsidiaries, we will actively manage our capital through capital planning and business EFWFMPQNFOUUPNBYJNJ[FUIFDBQJUBMFGåDJFODZPGFBDIBOEFWFSZTVCTJEJBSZ

2. Seek optimal terms and timing for raising capital and maintain liquidity

*OPSEFSUPJNQSPWFPVSDBQJUBMTUSVDUVSFBOEBEFRVBDZ XFJTTVFE/5CJMMJPOPGTVCPSEJOBUFECPOETJO BOE SFTQFDUJWFMZ(PJOHGPSXBSE XFXJMMDPOUJOVFUPFWBMVBUFUIFNBSLFUTGPSTFOJPS TVCPSEJOBUFE CPOET DPOWFSUJCMF FYDIBOHFBCMF CPOET QSFGFSSFETUPDLTBOEHMPCBMEFQPTJUPSZSFDFJQUTUPJNQSPWF DBQJUBMýFYJCJMJUZ*ODPPSEJOBUJPOXJUIUIFHPBMPGCVJMEJOHBOPOTIPSFPGGTIPSFåOBODJBMTFSWJDFQMBUGPSN XF XJMMBMTPTFFLUPFOTVSFUIFBWBJMBCJMJUZPGTVGåDJFOUGVOETUPIFMQUIF(SPVQFYQBOEBOECFDPNFBMFBEJOH fnancial institution in the Asia-Pacifc region.

$BUIBZ'JOBODJBM)PMEJOHTXBTIPOPSFECZUIF&1"JOUIF30$&OUFSQSJTFT $BUIBZ'JOBODJBM)PMEJOHThPODBNQVTSFDSVJUNFOUBDUJWJUZ &OWJSPONFOUBM1SPUFDUJPO"XBSE 2014 Annual Report 2014 Annual

$BUIBZ'JOBODJBM)PMEJOHTh&DPOPNJD$MJNBUFBOE'JOBODJBM$POEJUJPOT Cathay Financial Holdings sponsored Wei-Yin Chen baseball camp. outlook conference.

9 Overview of Subsidiaries Cathay Life Insurance Co., Ltd

Message from the President

Despite signs of a slow but steady global economic recovery in 2014, the road to a full recovery is riddled with potential potholes and uncertainties amid high debt, high unemployment, and low infation in &VSPQFBOEBOFDPOPNJDTMPXEPXOJONBKPSFNFSHJOHNBSLFUT QBSUJDVMBSMZJO$IJOB

*OUIFGBDFPGGBTUDIBOHJOHNBSLFUDPOEJUJPOT $BUIBZ-JGF*OTVSBODFIBTVOEFSUBLFOBTFSJFTPGNBKPS transformational initiatives. While the process was full of challenges, the results proved to be worthwhile. Our sales force of more than 20,000 was fully upgraded into an army of e-Agents. These agents are FRVJQQFEUPQSPWJEFDMJFOUTXJUIJOTUBOU IJHIRVBMJUZNPCJMFTFSWJDFT0VSDPNQSFIFOTJWFUSBJOJOHQSPHSBN and solid employee education and training have been certifed under the Taiwan Training Quality System 5524 CZUIF.JOJTUSZPG-BCPSPGUIF&YFDVUJWF:VBO5IBOLTUPUIFDPODFSUFEFGGPSUTPGPVSFNQMPZFFT XFSFQPSUFEGJSTUZFBSQSFNJVNFRVJWBMFOUPG64CJMMJPOJOXJUINBSLFUTIBSF0VSUPUBM QSFNJVNJODPNFGPSUIFZFBSBNPVOUFEUP64CJMMJPO XIJDISFQSFTFOUFEBNBSLFUTIBSFPG #PUIQPTJUJPOFEVTBTUIFOVNCFSPOFJOUIFNBSLFU8FBMTPSFQPSUFEBSFDPSECSFBLJOHQSPåUPG64 Cathay Financial Holdings Financial Cathay billion.

Our business performance continues to win public recognition. We won frst place in the Consumer Brand Survey by Management Magazine for 16 years in a row. We were also voted again the "most admired company in Taiwan" in the insurance industry in the Most Admired Company Survey by Commonwealth Magazine. International recognition included being the Taiwanese winner of the AsianInvestor Institutional &YDFMMFODF"XBSETCZ"TJBO*OWFTUPS&BDIBXBSESFQSFTFOUTSFDPHOJUJPOPG$BUIBZ-JGF*OTVSBODFhTFGGPSUTBT XFMMBTIJHIFSFYQFDUBUJPOTJOUIFGVUVSF

'PMMPXJOHUIFQIJMPTPQIZPGDPSQPSBUFTVTUBJOBCJMJUZ $BUIBZ-JGF*OTVSBODFIBTNBEFFOWJSPONFOUBM conservation, social responsibility, and governance part of its business plan. The ideas are embodied in the ongoing development of mobile insurance services in pursuit of a paperless, green fnancial operation BOEUIFMPOHUFSNTVQQPSUGPSOFXJNNJHSBOUTJO5BJXBOBTQBSUPGBDBNQBJHOGPSEJWFSTJUZ$BUIBZ-JGF Insurance is committed to being part of the community. With our transformation of our organization and full upgrade of our business, as well as our unwavering commitment to solid risk management practice and DVTUPNFSThSJHIUTJUJTUIFDPNQBOZhTQSPNJTFUPQSPDFFEPOUIFQBUIPGTVTUBJOBCMFEFWFMPQNFOUUPXBSEB brighter future.

-PPLJOHGPSXBSEUP $BUIBZ-JGF*OTVSBODFXJMMVQIPMEUIFDPSFWBMVFTPG*OUFHSJUZ "DDPVOUBCJMJUZ BOE$SFBUJWJUZ BOETUSJWFUPCFCFUUFSBOENPSFGPSXBSEUIJOLJOH$BUIBZ-JGF*OTVSBODFJTDPNNJUUFEUP creating a "socially responsible company" that "satisfies its customers", "cares for its employees", and HFOFSBUFTQSPåUTGPSJUTTIBSFIPMEFST-BTUMZ POCFIBMGPGNZDPMMFBHVFT *XPVMEMJLFUPFYUFOEPVSNPTU heartfelt gratitude to you all.

President Ming-Ho Hsiung

10 Company Profle

$BUIBZ-JGF*OTVSBODF$P -UEXBTGPVOEFEJO0DUPCFSBOEMJTUFEPO5BJXBO4UPDL&YDIBOHFJO /PWFNCFS*O XFSFDPSEFE64CJMMJPOJOQSFNJVNJODPNFBOE64CJMMJPOJOBTTFUT We rank number one in the industry by market share and total assets. With more than 7.8 million customers, we are not only a premium brand in the minds of consumers, but we have also won the recognition of professional institutions at home and abroad. We were also recognized as one of the Top 100 Taiwan Brands TFMFDUFECZUIF.JOJTUSZPG&DPOPNJD"GGBJSTJODPOKVODUJPOXJUI5BJXBOhTDFOUFOOJBMDFMFCSBUJPO8FIBWF CFFOUIFCJHHFTUXJOOFSBUUIF5BJXBO*OTVSBODF&YDFMMFODF"XBSETGPSåWFZFBSTJOBSPX

*OPSEFSUPEFWFMPQPWFSTFBTNBSLFUT XFFTUBCMJTIFETVCTJEJBSJFTJO$IJOBBOE7JFUOBNJOBOE 2008, respectively, becoming the frst Taiwan insurer with a presence in those two markets, and we plan to DPOUJOVFPVSPWFSTFBTFYQBOTJPOFGGPSUT-PPLJOHJOUPUIFGVUVSF XFXJMMDPOUJOVFUPTFFLHSPXUIBOETUFBEZ profts, and proactively offer services to enhance customer satisfaction as we move toward to the goal of becoming "a leading fnancial institution in the Asia-Pacifc region".

No. of employees 29,570

Average age 43.4

Average years of 12.0 services

$BUIBZ-JGFXBTDIPTFOUIF.PTU"ENJSFE$PNQBOZJO5BJXBOJOJOTVSBODFDBUFHPSZCZ CommonWealth Magazine. 2014 Annual Report 2014 Annual

11 Overview of Subsidiaries Cathay Life Insurance Co., Ltd

Board of Directors, Independent Directors, Supervisors and Key Managers

Name Education Experience +% 4PVUIFSO.FUIPEJTU6OJWFSTJUZ Hong-Tu Tsai Chairman, Cathay Financial Holdings 64" Cheng-Ta Tsai #" $IJOFTF$VMUVSF6OJWFSTJUZ .BOBHJOH%JSFDUPS $BUIBZ-JGF*OTVSBODF Cheng-Chiu Tsai ." ,FJP6OJWFSTJUZ +BQBO Chairman, Cathay Century Insurance Tiao-Kuei Huang ." /BUJPOBM5TJOH)VB6OJWFSTJUZ 7JDF$IBJSNBO $BUIBZ-JGF*OTVSBODF Ming-Ho Hsiung ." 6OJWFSTJUZPG*PXB 64" 1SFTJEFOU $BUIBZ-JGF*OTVSBODF 5IF$IJFG3FQSFTFOUBUJWFPG(SFBUFS$IJOB $BUIBZ Fa-Te Chang #4 /BUJPOBM$IVOH)TJOH6OJWFSTJUZ Board of -JGF*OTVSBODF Directors Tzung-Han Tsai +% (FPSHFUPXO6OJWFSTJUZ 64" &YFDVUJWF7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF ." 4BO'SBODJTDP4UBUF6OJWFSTJUZ Chung-Yan Tsai 7JDF1SFTJEFOU $BUIBZ3FBM&TUBUF%FWFMPQNFOU 64" $IBJSNBO .BZ'PPOH8PPMFO8PSTUFE5FYUJMF Cathay Financial Holdings Financial Cathay John Chung-Chang Chu .#" :PSL6OJWFSTJUZ $BOBEB .JMM-UE 8FJ.JOH-V Kainan Commercial & Technical School $IBJSNBO 4FOH)POH$P -UE Han-Chang Tsai #" /BUJPOBM$IVOH)TJOH6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF $IBP5JOH-JO ." /BUJPOBM5BJXBO6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF

Name Education Experience Chairman, SinoPac Financial Holdings Min-Houng Hong 1I%.JDIJHBO4UBUF6OJWFSTJUZ 64" $IBJSNBO 1BOBTPOJD5BJXBO$P -UE 1I%$BOEJEBUF /JIPO6OJWFSTJUZ Director, First Financial Holdings Tsing-Yuan Hwang Independent Japan %JSFDUPS )PO)BJ1SFDJTJPO*OEVTUSZ$P -UE Directors Country Head of JPMorgan Taiwan and Hong .#" #BSVDI$PMMFHF $JUZ6OJWFSTJUZ Kong Andrew Ming-Jian Kuo PG/FX:PSL 64" Senior Advisor for Greater China, The Blackstone (SPVQ ), -JNJUFE

Name Education Experience Wan-Teh Tsai /JTIP(BLVTIB6OJWFSTJUZ +BQBO $IBJSNBO "O5FI%FWFMPQNFOU$P -UE Supervisors Kai-Mo Chen /BUJPOBM5BJXBO6OJWFSTJUZ 7JDF$IBJSNBO $BUIBZ(FOFSBM)PTQJUBM $IJI.JOH-JO /BUJPOBM5BJXBO6OJWFSTJUZ Superintendent, Cathay General Hospital

Position Name Education Executive Chairman Hong-Tu Tsai +% 4PVUIFSO.FUIPEJTU6OJWFSTJUZ 64" Offcer

Position Name Education President Ming-Ho Hsiung ." 6OJWFSTJUZPG*PXB 64" &YFDVUJWF7JDF1SFTJEFOU :PVOH+BOO-FF .#" /BUJPOBM5BJXBO6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU Han-Chang Tsai #" /BUJPOBM$IVOH)TJOH6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU $IJI$IJBOH-JBP #" /BUJPOBM$IVOH)TJOH6OJWFSTJUZ .#" $IJOB&VSPQF*OUFSOBUJPOBM#VTJOFTT &YFDVUJWF7JDF1SFTJEFOU Chih-Jung Gung Key School Managers &YFDVUJWF7JDF1SFTJEFOU 4IBO$IJ-JV .#" /BUJPOBM5BJXBO6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU $IBP5JOH-JO ." /BUJPOBM5BJXBO6OJWFSTJUZ Chief Auditor Chang-Te Chian #" 'FOH$IJB6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU Yi-Tsung Wang .#" .BTTBDIVTFUUT*OTUJUVUFPG5FDIOPMPHZ 64" $IJFG3JTL0GåDFS Hsiao-Yuan Ching ." 6OJWFSTJUZPG*PXB 64"

12 Business Scope

-JGFJOTVSBODFBOESFMBUFECVTJOFTTFT

2014 Revenue Breakdown

6OJU.JMMJPO64%

2014 Revenue Amount % of Total ■ 3FUBJOFEFBSOFEQSFNJVN 14,854.15 61.5 income ■ /FUJOWFTUNFOUHBJO MPTT 5,331.97 22.1 ■ Insurance gain from unit-linked 3,638.03 15.0 products ■ Other income 338.05 1.4 Total income 24,162.20 100.0

/5%64% 2014 Annual Report 2014 Annual

$BUIBZ-JGFhT0WFSTFBT4VNNJU.FFUJOH

13 Overview of Subsidiaries Cathay Life Insurance Co., Ltd

2015 Business Plan

BUSINESS DEVELOPMENT meet unsatisfed customer needs for services to 1.Strengthen managerial personnel training, increase mind share with our customers. FOIBODFUIFRVBMJUZPGOFXTUBGG TUSFOHUIFOUIF -FWFSBHF(SPVQSFTPVSDFTBOEBOBMZ[FDVTUPNFS mechanism for new employee development, needs to better cultivate different customer promote tiered education and optimize segments. organizational structure. &YQBOEPOMJOFBOENPCJMFJOTVSBODFTFSWJDFT Back Offce Support: and improve customer oriented marketing &EVDBUJPOBOEUSBJOJOH strategies to increase customer satisfaction. 3FåOFMFWFMCBTFEFEVDBUJPOBOETUSFOHUIFO -FWFSBHFUIFSFTPVSDFTPG$BUIBZ'JOBODJBM QSBDUJDBMUSBJOJOHJOFYDFMMFODFUPFODPVSBHF Holdings to offer one-stop fnancial services and constant improvement of the organization as improve the operating effciency of the Cathay a whole.

Cathay Financial Holdings Financial Cathay Group. 0QUJNJ[FUIFMFBSOJOHQMBUGPSNBOEDPNCJOF 4.Continue to seek growth in markets in China training resources to reinforce training results BOE7JFUOBNXJUIBOFNQIBTJTPOMPDBMJ[BUJPO and create a learning organization. while continuing to work toward being a leading )VNBOSFTPVSDFTEFWFMPQNFOU fnancial institution in the Asia-Pacifc region. %FWFMPQUBMFOUQPPMTUPOVSUVSFBOESFUBJO Product Development: employees with potential and build a team of leaders. 1.Continue to develop innovative products and combine related services to meet customer $BSSZPVUNBOBHFNFOUDPNQFUFODF needs and create better value. enhancement programs to improve the RVBMJUZPGNBOBHFSJBMQFSTPOOFMBOE 2.Step up the sale of protection-oriented products FODPVSBHFKPCSPUBUJPO to offer customers more protection. *NQSPWFUBMFOUQPPMTBOEQFSGPSNBODFSFXBSE 3.Highlight product features that respond to the programs and encourage organizational market environment and create sales opportunities. growth to maintain competitiveness. Customer Service: 0QFSBUJOHQSPDFTT 1.Build a complete line of mobile services to $POUJOVFUPSFJOGPSDFNBOBHFNFOUUPPMT provide better and faster services. UPFOIBODFRVBMJUZDPOUSPMBOEJNQSPWF 2.Increase the scope of the gathering and use operational effciency. of customer opinions and continue to provide 6OEFSUBLFQSPDFTTFTBOEPSHBOJ[BUJPOBM JOOPWBUJWFTFSWJDFTBOEJNQSPWFUIFRVBMJUZPG reengineering to enhance service efficiency service. that enables customers to feel the 3.Continue to take the initiative to identify and JNQSPWFNFOUPGPWFSBMMTFSWJDFRVBMJUZ

$BUIBZ-JGF8PNFOXPOUIF84#-DIBNQJPOTIJQ $BUIBZ-JGFhTFNQMPZFFTTJOHJOHBOEDIFFSMFBEJOHDPOUFTUåOBM

14 2015 Operational Targets

6OJU.JMMJPO64%

Item Targets Total premium income 20,219

/5%64%

$BUIBZ-JGFhT&NQMPZFFT'VO$POUFTU 2014 Annual Report 2014 Annual

$BUIBZ-JGFXBTIPOPSFECZUIF'4$GPSBEWPDBUJOHNJDSPJOTVSBODFGPSUIF 0QFOJOHPG$BUIBZ-JGFhTTFSWJDFDPVOUFSBU5BPZVBO*OUFSOBUJPOBM"JSQPSU disadvantaged. Terminal 1.

15 Overview of Subsidiaries Cathay United Bank Co., Ltd.

Message from the Chairman

5IFHMPCBMFDPOPNZJOTBXSFMBUJWFMZDMFBSHSPXUIJOUIF6OJUFE4UBUFTBTJUTRVBOUJUBUJWFFBTJOHTUJNVMVT QSPHSBNESFXUPBDMPTF XIJMFUIF&VSP[POF $IJOB BOE+BQBOGBDFEUIFUISFBUPGQPUFOUJBMJOýBUJPOBOEFBTFE their monetary policies at the same time to maintain growth momentum. The combination of falling oil prices and SFHJPOBMQPMJUJDBMVOSFTUDSFBUFENPSFWPMBUJMJUZJOTUPDLNBSLFUTBOEGPSFJHOFYDIBOHFNBSLFUTBSPVOEUIFXPSME Given the macroeconomic environment, the Financial Supervisory Commission adopted a policy of regulating with caution while encouraging growth. The FSC, while imposing strict risk management regulations, urged fnancial JOTUJUVUJPOTUPFYQBOEPVUTJEF5BJXBOBOEJOUPPUIFSDPVOUSJFTJO"TJB5IF'4$BMTPTUFQQFEVQJUTQSPUFDUJPO of financial consumers to guide the financial markets as well as the financial sector toward healthy, positive development. In line with its mission to create value and enrich lives and guided by the core values of "integrity, BDDPVOUBCJMJUZBOEDSFBUJWJUZ $BUIBZ6OJUFE#BOLIBTFOEFBWPSFEUPQSPWJEFDVTUPNFSDFOUSJDTFSWJDFTCBDLFECZ FYQFSUJTFBOERVBMJUZ*O $BUIBZ6OJUFE#BOLSFDFJWFEBTUBCMFPVUMPPLSBUJOHGSPN5BJXBO3BUJOHT 4UBOEBSE 1PPShTBOE.PPEZhT*OWFTUPST4FSWJDF BOESFQPSUFECBMBODFEBOETUBCMFHSPXUIBDSPTTJUTCVTJOFTTFT0VS Cathay Financial Holdings Financial Cathay DPOTPMJEBUFEBGUFSUBYFBSOJOHTJOUIFZFBSSFBDIFE64NJMMJPO NBLJOHJUBOPUIFSSFDPSECSFBLJOHZFBSTJODF we commenced business 40 years ago. We continued to turn in a strong performance in terms of awards and rankings both at home and abroad. For FYBNQMF XFXPOGPVSBXBSETBUUIF0VUTUBOEJOH'JOBODJBM#VTJOFTT&MJUF"XBSET LOPXOBTUIF"DBEFNZ"XBSET GPSGJOBODJBMJOTUJUVUJPOTJO5BJXBO JODMVEJOH#FTU3JTL.BOBHFNFOU"XBSE #FTU*OUFSOBUJPOBM%FWFMPQNFOU "XBSE FYDFMMFOUQFSGPSNBODF #FTU$43"XBSE FYDFMMFOUQFSGPSNBODF BOE#FTU)VNBO3FTPVSDFT %FWFMPQNFOU"XBSE FYDFMMFOUQFSGPSNBODF $BUIBZ6OJUFE#BOLXBTOBNFECZ5IF#BOLFSBT#BOLPGUIF Year 2014 in Taiwan". We were recognized by The Asset as the winner of the 2014 Triple A Greater China Awards - Wealth Advisory Award. We were also named by Trade Finance as The Best Trade Bank in Taiwan and The Best -PDBM$BTI.BOBHFNFOU#BOLJO5BJXBO*%$'JOBODJBM*OTJHIUTOBNFE$BUIBZ6OJUFE#BOLBT"TJBhT-FBEFS JO4NBSU#BOLJOHJO5IF8PSLGPSDF%FWFMPQNFOU"HFODZPGUIF.JOJTUSZPG-BCPSPGUIF&YFDVUJWF:VBO BXBSEFE$BUIBZ6OJUFE#BOLUIF5BMFOU2VBMJUZNBOBHFNFOU4ZTUFN 5524 (PME"XBSE5IF.JOJTUSZPG)FBMUI BOE8FMGBSFBMTPBXBSEFE$BUIBZ6OJUFE#BOLUIF&YDFMMFOU)FBMUIZ8PSLQMBDF)FBMUI-FBEFSTIJQ"XBSE 5PFYQSFTTPVSHFOVJOFHSBUJUVEF $BUIBZ6OJUFE#BOLUSFBUTFBDIIPOPSTBTBTUBSUJOHQPJOUGPSTFUUJOHNPSF challenges and achieving higher goals. $BUIBZ6OJUFE#BOLIBTBUPUBMPGCSBODIFTJOUIFEPNFTUJDNBSLFU5PHFUIFSXJUIUIFBEEJUJPOPGOFX PWFSTFBTPGåDFTJO $BUIBZ6OJUFE#BOLhTPWFSTFBTOFUXPSLDPOTJTUTPGPOFXIPMMZPXOFETVCTJEJBSZ POFKPJOU WFOUVSF PWFSTFBTCSBODIFTTVCCSBODIFT BOESFQSFTFOUBUJWFPGåDFT $BUIBZ6OJUFE#BOLJTDVSSFOUMZGPDVTFEPONBLJOHNPSFJOWFTUNFOUTJO"TJBONBSLFUTBOETFFLJOH PQQPSUVOJUJFTGPSJOUFSOBUJPOBMFYQBOTJPO0VSPQFSBUJPOTJO$IJOBBSFBDIJFWJOHFDPOPNJFTPGTDBMF5IF4IBOHIBJ Branch has consistently topped the performance rankings of Taiwanese owned banks in China. The Shanghai Minhang Sub-Branch, the Shanghai Pilot Free Trade Zone Sub-Branch, and the Qingdao Branch opened for business in March, July, and October 2014, respectively. All three were the frst Taiwanese-owned banks to enter UIFJSSFTQFDUJWFSFHJPOT3FHBSEJOH4PVUIFBTU"TJBONBSLFUT XFDPOUJOVFEUPFYUFOEPVSTFSWJDFOFUXPSL5IF MJBJTPOPGåDFJO3BOHPPO .ZBONBS PQFOFEJO4FQUFNCFS5IF7JFOUJBOF -BPT #SBODIPQFOFEJO%FDFNCFS NBLJOH$BUIBZ6OJUFE#BOLUIFåSTU5BJXBOFTFPXOFECBOLUPFOUFS-BPT$BUIBZ6OJUFE#BOLBMSFBEZIBT PGGJDFTJOFJHIUPVUPGUFO"4&"/DPVOUSJFT JODMVEJOH7JFUOBN $BNCPEJB 5IBJMBOE 4JOHBQPSF .BMBZTJB UIF 1IJMJQQJOFT #VSNB BOE-BPT*OBEEJUJPO QSFQBSBUJPOTBSFDVSSFOUMZVOEFSXBZGPSBSFQSFTFOUBUJWFPGåDFJO+BLBSUB *OEPOFTJB $IJOBBOE4PVUIFBTU"TJBONBSLFUTBSFHSPXJOHGBTU8JUIDPOUJOVPVTMZSFMBYJOHFDPOPNJDQPMJDJFTBOE "4&"/FDPOPNJDJOUFHSBUJPO QPUFOUJBMHSPXUIJOUIFGVUVSFDBOCFTJHOJåDBOU$BUIBZ6OJUFE#BOLXJMMDPOUJOVF to develop its services network and platform and strive to become the best partner for fnancial services and risk management for its customers. 3FHBSEJOHJOOPWBUJPOBOEMFBEFSTIJQ $BUIBZ6OJUFE#BOLSFTQPOEFEUPOFXEFWFMPQNFOUTJOUFDIOPMPHZ the increasing use of mobile devices and arrival of the age of the internet of things by applying innovative technologies to transform its business and development of customer relationships. We created a Digital Banking Group to develop models for digital financial services that can instantly satisfy customer needs and deliver a QSFNJVNDVTUPNFSFYQFSJFODF

16 4VTUBJOBCMFEFWFMPQNFOUJTBTVCKFDUUIBUOFFETDPOTUBOUBUUFOUJPOGSPNCVTJOFTTFT$BUIBZ6OJUFE#BOLBOE its parent company, Cathay Financial Holdings, work together in the areas of environmental conservation, social responsibility, and governance to contribute to sustainable development of the company as well as the community. $PSFDPNQFUFODJFTBSFDPNCJOFEUPEFWFMPQHSFFOåOBODJBMTFSWJDFT TVDIBTFYUFOEJOHDSFEJUUPFOWJSPONFOUBM firms, offering solar financing, and supporting environmental conservation, energy generation, and energy DPOTFSWBUJPO UPBDIJFWFBXJOXJOTJUVBUJPOBMMBSPVOE.FBOXIJMF $6#UVSOFEEJOJOHJOUPDIBSJUZCZEPOBUJOH PGUIFBNPVOUPGDSFEJUDBSETQFOEJOHPOEJOJOHBDUJWJUJFTJOUIFQSFWJPVTZFBSUPQSPWJEFGSFFCSFBLGBTUTGPS DIJMESFOJOSFNPUFSVSBMBSFBT'VSUIFSNPSF $BUIBZ6OJUFE#BOL$VMUVSFBOE$IBSJUZ'PVOEBUJPOhT&MFWBUFE5SFF 1SPHSBNJTJOJUTUIZFBS5IFQSPHSBNIBTEPOBUFENPSFUIBO64NJMMJPOUPIFMQPWFS TDIPPMDIJMESFO PWFSUIFZFBST*UCSJOHTUIFDPNNVOJUZUPHFUIFSBOEFYUFOETUIFJEFBPGTIBSJOHGSPNJOEJWJEVBMTUPGBNJMJFTBOEUP society to create a brighter future. -PPLJOHGPSXBSEUP $BUIBZ6OJUFE#BOLhTWJTJPOPGFYQBOEJO"TJB1BDJåDBOESFBDIBOFXTVNNJUJT CFJOHSFBMJ[FEJOTUBHFTVOEFS1SPKFDU/FX)FJHIUT#BTFEPOCVTJOFTTTUSBUFHJFTTVDIBTJOOPWBUJWFNBOBHFNFOU and optimized structure, the efforts focus on the organization, core businesses, and sales network. We hope the JNQBDUXJMMCFSFGMFDUFEJORVBOUJUBUJWFBOERVBMJUBUJWFSFTVMUT8FXJMMMFWFSBHF(SPVQSFTPVSDFTUPDPOTUSVDUB global network and a diversifed portfolio of fnancial services. We will take advantage of our strength in our service network and IT capability to develop both physical and virtual distribution channels at the same time and create a fnancial services platform. We will continue to offer our customers professional fnancial services that suit their needs, and work toward the goal of being a leading fnancial institution in the Asia-Pacifc region.

Chairman Tsu-Pei Chen

No. of employees 7,637

Average age 36.75

Average years of 9.03 services

$BUIBZ6OJUFE#BOL$VMUVSFBOE$IBSJUZ'PVOEBUJPOPSHBOJ[FEUIF&UFSOBM Company Profle Classic Concert.

$BUIBZ6OJUFE#BOLXBTFTUBCMJTIFEPO.BZ BOEIBTCFFOQSPWJEJOHCBOLJOHTFSWJDFTGPS NPSFUIBOZFBST$VSSFOUMZPVSQBJEJODBQJUBMJT/5CJMMJPO"TCFJOHUIFMFBEFSBNPOHUIFQSJWBUF CBOLJOHTFDUPSJO5BJXBO XFIBWFUIFMBSHFTUEPNFTUJDOFUXPSLXJUICSBODIFT BOEUFOCSBODIFTTVC branches and fve representative offces overseas. We have been seeking opportunities for the development BOEHSPXUIJO7JFUOBN*O XFDPPQFSBUFEXJUI7JFUJOCBOLUPTFUVQUIF*OEPWJOB#BOLXIJDIJTBKPJOU WFOUVSF5IF*OEPWJOB#BOLIBTPGåDFT XIJDIJTUIFMBSHFTUOVNCFSPGMPDBMQPJOUTPGTFSWJDFJO7JFUOBN *O$BNCPEJB XFBDRVJSFEBFRVJUZTUBLFPG4#$#BOLBOESFOBNFEJUUP$6#$XJUIUPUBMPGåDFT JODMVEJOHBIFBEPGGJDFBOECSBODIFT5IFBDRVJTJUJPOIFMQFEVTFYQBOEPVSPWFSTFBTCVTJOFTTFTBOE DVTUPNFSCBTFNPSFRVJDLMZ*O4PVUIFBTU"TJB XFIBWFHBJOFEBQMBDFBOEPVUQFSGPSNFEPVS5BJXBOFTF competitors. We continuously improve and increase our competiveness for the preparation of regional FYQBOTJPO8FGPDVTPOQSPWJEJOHBXJEFSBOHFPGHPPERVBMJUZTFSWJDFTBOEDSFBUJWFQSPEVDUTGPSPVS DVTUPNFSTJO5BJXBOBOEBCSPBE JODMVEJOHDPSQPSBUFCBOLJOH SFUBJMCBOLJOH DPNQSJTJOHDSFEJUDBSET XFBMUINBOBHFNFOU MJGF1$JOTVSBODF BOETFDVSJUJFT*OBEEJUJPO UPGVMåMMDVTUPNFSOFFETJNNFEJBUFMZ we have over 1,900 ATMs across Taiwan andoffer internet banking and mobile banking services. 2014 Annual Report 2014 Annual $BUIBZ6OJUFE#BOLXBTBXBSEFECZ5IF#BOLFSBT#BOLPGUIF:FBSJO5BJXBO8FBSFBMTPUIFåSTU BOEPOMZCBOLUIBUSFDFJWFE5BMFOU2VBMJUZNBOBHFNFOU4ZTUFN 5524 (PME"XBSEGSPN.JOJTUSZPG-BCPS

17 Overview of Subsidiaries Cathay United Bank Co., Ltd.

Board of Directors, Independent Directors and Key Management

Name Education Experience Tsu-Pei Chen #" /BUJPOBM$IFOHDIJ6OJWFSTJUZ $IBJSNBO $BUIBZ6OJUFE#BOL $IBOH,FO-FF .#" 6OJWFSTJUZPG1FOOTZMWBOJB 64" President, Cathay Financial Holdings "MBO-FF ." /BUJPOBM5BJXBO6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL Chun-Wei Yang #" /BUJPOBM$IFOHDIJ6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL William C.W. Huang ." 6OJWFSTJUZPG8BTIJOHUPO 64" $IBJSNBO 5BJ-VOH$BQJUBM*OD Chi-Wei Joong #" ,FBO$PMMFHFPG/FX+FSTFZ 64" President, CMB Credit Card Center Board of Directors Tzung-Han Tsai +% (FPSHFUPXO6OJWFSTJUZ 64" 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL Chuan-Chuan Hsieh #" /BUJPOBM5BJXBO6OJWFSTJUZ &YFDVUJWF7JDF1SFTJEFOU #BOLPG5BJXBO Grace Chen .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL M.B.A., Massachusetts Institute of Chung-Yi Teng 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL 5FDIOPMPHZ 64"

Cathay Financial Holdings Financial Cathay Po-Tsang Hsieh #" $IJOFTF$VMUVSF6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL Tsung-Hsien Tsai .4 )BSWBSE6OJWFSTJUZ 64" 7JDF1SFTJEFOU $BUIBZ'JOBODJBM)PMEJOHT

Name Education Experience Chairman, SinoPac Financial Holdings Min-Houng Hong 1I%.JDIJHBO4UBUF6OJWFSTJUZ 64" $IBJSNBO 1BOBTPOJD5BJXBO$P -UE 1I%$BOEJEBUF /JIPO6OJWFSTJUZ Director, First Financial Holdings Independent Tsing-Yuan Hwang Japan %JSFDUPS )PO)BJ1SFDJTJPO*OEVTUSZ$P -UE Directors Country Head of J.P.Morgan Taiwan and Hong Kong .#" #BSVDI$PMMFHF $JUZ6OJWFSTJUZ Andrew Ming-Jian Kuo Senior Advisor for Greater China, The Blackstone PG/FX:PSL 64" (SPVQ ), -JNJUFE

Name Education Experience Peggy Wang #" /BUJPOBM5BJXBO6OJWFSTJUZ $IBJSNBO $BUIBZ'VUVSFT$P -UE M.A., Asian Institute of Technology, Supervisors Shu-Min Wang $IJFG4FDSFUBSZ $IVOHIXB1PTU$P -UE Thailand Kuo-Hsim Yeh #" /BUJPOBM5BJXBO6OJWFSTJUZ $IBJSNBO 6OJUFE/BUJPOBM#BOL

Position Name Education Executive Chairman Tsu-Pei Chen /BUJPOBM$IFOHDIJ6OJWFSTJUZ Offcer

Position Name Education President $IBOH,FO-FF .#" 6OJWFSTJUZPG1FOOTZMWBOJB 64" 4FOJPS&YFDVUJWF7JDF Tzung-Han Tsai +% (FPSHFUPXO6OJWFSTJUZ 64" President Chief Auditor :BP$ZVO-BJ ." 5BNLBOH6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF "MBO-FF .#" /BUJPOBM5BJXBO6OJWFSTJUZ President Key 4FOJPS&YFDVUJWF7JDF Chun-Wei Yang #" /BUJPOBM$IFOHDIJ6OJWFSTJUZ Managers President 4FOJPS&YFDVUJWF7JDF Grace Chen .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ President 4FOJPS&YFDVUJWF7JDF Chung-Yi Teng .#" .BTTBDIVTFUUT*OTUJUVUFPG5FDIOPMPHZ 64" President 4FOJPS&YFDVUJWF7JDF Po-Tsang Hsieh #" $IJOFTF$VMUVSF6OJWFSTJUZ President

18 Business Scope

"MMUZQFTPGEFQPTJUT UIFPSJHJOBMCVTJOFTT 24. Financial derivative commodities approved by license states checking deposits, current competent authorities EFQPTJUT UJNFEFQPTJUTBOETBWJOHTEFQPTJUT 5SVTUCVTJOFTTBVUIPSJ[FECZUIF5SVTU&OUFSQSJTF 2. Issuance of bank debentures Act -PBOTBOEDSFEJU UIFPSJHJOBMCVTJOFTTMJDFOTF 26. Trust business authorized by the Authority to be states short, medium and long-term loans, handled by the head offce trust department DFSUJåDBUFPGEFQPTJUMPBOTBOEDPOTVNFSMPBOT /POEJTDSFUJPOBSZ NPOFZ USVTU JOWFTUJOH PO 4. Check discounting foreign securities 4FDVSJUJFTJOWFTUNFOU UIFPSJHJOBMCVTJOFTT 28. Dealing of government bonds license states investment in government 29. Brokerage, dealing, certifcation, and underwriting bonds, short-term bills, corporate bonds, bank of short-term notes and bills EFCFOUVSFTBOEDPSQPSBUFTUPDLT 30. Issuance of cash cards 6. Domestic remittances 31. Financial consulting for fnancing related businesses 7. Commercial draft acceptance 32. Financial consulting for non-financing related 8. Issuance of domestic letters of credit businesses 9. Corporate guarantee bonds 33. Dealing of corporate bonds and fnancial bonds %PNFTUJD HVBSBOUFF TFSWJDFT UIF PSJHJOBM 34. Wealth management CVTJOFTTMJDFOTFTUBUFTHVBSBOUFFTFSWJDFT 35. Concurrent business as a securities investment 11. Payment settlement consulting enterprise 4BMFTPGHPWFSONFOUCPOETCJMMTBOEDPSQPSBUF 36. Money trust CPOETTUPDLT 37. Trust of encumbrance and related security 4FDVSJUJFTVOEFSXSJUJOH UIFPSJHJOBMCVTJOFTT interests license states underwriting of government bonds, treasury bills, corporate bonds and 38. Securities trust DPSQPSBUFTUPDLT 39. Movable property trust 14. Securities dealing 3FBMFTUBUFUSVTU 15. Custody and warehousing services -BOESJHIUUSVTU 3FOUBMPGTBGFEFQPTJUCPYFT 42. Discretionary investment trust services 17. Agency services covered by the business scope 43. Acting as agents for issuance, transfer, registration specified on business license or approved by and payment of interests or dividends o competent authorities 44. Providing consulting services for securities $SFEJUDBSETFSWJDFT UIFPSJHJOBMCVTJOFTTMJDFOTF issuance or offering TUBUFTDSFEJUDBSEBOEDBTIBEWBODF 45. Acting as attesters for issuance of stock or bond #SPLFSFETBMFTPGHPMECBSTDPJOTBOETJMWFS coins 46. Acting as attesters for issuance of securities 1VSDIBTFTBOETBMFTPGHPMECBSTDPJOTBOETJMWFS "DUJOH BT FYFDVUPS PG XJMMT BOE NBOBHJOH coins legacies *NQPSUBOEFYQPSUGPSFJHOFYDIBOHFUSBOTBDUJPOT 48. Acting as trustees for issuance of bond and JOCPVOEPVUCPVOEXJSFUSBOTGFS BOEGPSFJHO providing related agent securities currency deposits, loans, and payment guarantee 49. Custody services (FOFSBMGPSFJHOFYDIBOHFUSBOTBDUJPOT JOCPVOE 50. Acting as custodians of securities investment PVUCPVOEXJSFUSBOTGFSGPSFJHODVSSFODZEFQPTJUT trust funds 2014 Annual Report 2014 Annual 23. Dealing foreign currency cash and travelers 51. Providing advisory services for investment, fnancial DIFRVFT management, and real estate development

19 Overview of Subsidiaries Cathay United Bank Co., Ltd.

2014 Income Statement

6OJU.JMMJPO64%

Item Amount % of Total ■ /FUJOUFSFTUJODPNF 783 55 ■ /FUGFFJODPNF 369 26 ■ Financial asset or fnancial liability at fair 138 10 value through proft ■ 3FBMJ[FEHBJOPOBWBJMBCMFGPSTBMFåOBODJBM 63 5 assets ■ 4IBSFPGHBJO MPTT GSPNBGåMJBUFTBOEKPJOU 6 - WFOUVSFTSFDPHOJ[FECZFRVJUZNFUIPE ■ (BJOPOGPSFJHODVSSFODZFYDIBOHF OFU 34 2 ■ Impairment losses on assets - ■ Other non-interest income, net 33 2 Cathay Financial Holdings Financial Cathay Total net income 1,422 100.00

/5%64%

2015 Business Plan

Business overview: customers based on their needs and also deepen In the face of rapid market changes and intense DVTUPNFSSFMBUJPOTIJQ-BVODIEJHJUBMBQQMJDBUJPOT JOEVTUSZDPNQFUJUJPO $BUIBZ6OJUFE#BOL UPDSFBUFOFXFYQFSJFODFTGPSDVTUPNFSTBOEPGGFS DPOUJOVFTUPJNQMFNFOUUIF1SPKFDU/FX QSFNJVNTFSWJDF&OIBODFDBTIýPXQBZNFOUUPPMT Heights" to strengthen organizational operations and diverse platforms and develop mobile banking by leveraging group resources more efficiently, services to boost transactionss. and offer diverse services and products to meet changes. Key business pillars include customers Loans: management by segments, development for Optimize credit asset structure and enhance capital differential products and services, and one- VUJMJ[BUJPO6UJMJ[FEBUBCBTFUPJEFOUJGZQPUFOUJBM stop financial solutions. In response to the trend target customers and provide specific products of shifting to digital banking services, Cathay based on their purchase behaviors tomaintain 6OJUFE#BOLXJMMJNQMFNFOU*5ESJWFOCVTJOFTT long-term relationship with customers. transformationto offer competitive digitalbanking services, and the process optimization to increase Corporate banking: branch value. In addition, to increase our brand Increase target customer base and increase non- awareness and presence in Asia-Pacific, we will interest income to gain themarket share. Develop continue to grow Greater China and Southeast asset-related services for corporate clients to track Asia. Meanwhile, we will enhance employee their cash flow and try to become the primary capabilities through diversified training programs bank for customers. Secure the leading position in UPTVQQPSUPVSPWFSTFBTFYQBOTJPO"MTP EFWFMPQ syndicated loan and structure fnancing businesses. complete risk policies and management to deliver enhanced return to get the leading position and Overseas operations: be the best bank in AsiaPacifc. %FFQFOUIFQSFTFODFUPYQBOEUIFPWFSTFBT network and conduct businesses based on Deposits: localization.. Improve overseas management Guided by a customer-centric business philosophy, structures and business models and develop niche provide integrated products and services for products to meet customer needs in respective

20 SFHJPOTUPHFOFSBUFIJHIFSQSPGJUT-FWFSBHF Foreign exchange: advantages of the domestic and overseas networks Optimize the process of cross-border payment to achieve business synergy and create a complete TFSWJDFTBOEBMTPFYQBOEQBZNFOUQMBUGPSNTUP banking platform in AsiaPacifc. EFWFMPQGPSFJHOFYDIBOHFQSPEVDUTGPSOJDIF markets to increase customer loyalty. Credit cards: Innovations on products and new payment Digital banking services: methods to capture cross-border opportunities and 4VQQPSUUIF'4$hTQSPKFDU #VJMEJOH%JHJUBM secure a leading position. Manage customers by 'JOBODJBM&OWJSPONFOU BOEFOEFBWPSUP EJGGFSFOUJBUJPOBOEJODSFBTFDSFEJUDBSEBDRVJTJUJPO become the primary bank among customers in the and total spending amount. digital age.

Wealth management: Financial marketing: (VJEFECZUIFTUSBUFHJDPCKFDUJWF BTTFUT 3FTQPOEUPBDUVBMEFNBOEBOEFYQMPSFQPUFOUJBM activation and customer-focused managementwe DVTUPNFSOFFETUPFYQBOEUIFUBSHFUBVEJFODF adopt a scientifc management approach to build Improve sales skills and maintain good relationship up our high-net-worth customer base and increase with customers. a percentage of their wallet share. A balance must be maintained between profit and risk Private banking services: NBOBHFNFOUJOPSEFSUPBDIJFWFUIFPCKFDUJWFPG -BVODIOFXUZQFTPGQSPEVDUT GPDVTPODPSF helping customers increase their assetvalue. SFWFOVFCVTJOFTTFT BOEFYUFOEUIFEJTUSJCVUJPO of private banking services. Strengthen strategic Trust: alliances with Cathay Financial Holdings and Develop a third party payment business to meet FYUFSOBMQBSUOFSTUPPGGFSEJWFSTFQSPEVDUTBOE the increasing demand for mobile payment service. service to satisfy the needs of high -net-worth Continue to promote trust products and provide clients. innovative trust products and investment research services.

2015 Operational Targets

6OJU.JMMJPO64%

Item Targets Deposits 56,668 -PBOT JODMVEJOHSFWPMWJOHDSFEJU 39,153 Credit cards 5,000,000 cards

/5%64% 2014 Annual Report 2014 Annual

$BUIBZ6OJUFE#BOLSFDFJWFEUIFUI5BJXBO0VUTUBOEJOH'JOBODJBM#VTJOFTT $BUIBZ6OJUFE#BOL$VMUVSFBOE$IBSJUZ'PVOEBUJPOhT&MFWBUFE5SFF &MJUF"XBSE Program" donation ceremony.

21 Overview of Subsidiaries Cathay Century Insurance Co., Ltd.

Message from the Chairman

As the global economy continued to recover in 2014, the economic growth rate in Taiwan also rose DPNQBSFEUP *OBEEJUJPO UIFBVUPNPUJWFNBSLFUSFQPSUFETJHOJåDBOUHSPXUIPG Combined with higher vehicle insurance premiums, total vehicle insurance premium income increased CZPWFSUIFZFBS XIJDISFTVMUFEJOHSPXUIJOQSFNJVNTGPSUIFPWFSBMMOPOMJGFJOEVTUSZBT compared to 2013. In the face of a demanding economic environment and signifcant market competition, XF HVJEFECZUIFQSJODJQMFPGFRVBMFNQIBTJTPORVBMJUZBOERVBOUJUZ DPOUJOVFEUPTFFLOFX PQQPSUVOJUJFTJOUIFNBSLFUBTXFMMBTHSPXUI8FBMTPXPSLFEUPJNQSPWFTFSWJDFRVBMJUZCZVUJMJ[JOHEJHJUBM UFDIOPMPHZUPJNQSPWFPQFSBUJOHFGGJDJFODZ5IFPCKFDUJWFXBTUPEFMJWFSBNPSFQSPGFTTJPOBMBOENPSF refned performance and to pursue service innovation to make the company more competitive. Through the concerted efforts of our colleagues and the assistance of our affiliates, our market share rose from UP5IJTQVUVTåSNMZJOTFDPOEQMBDFXJUIJOUIFJOEVTUSZ)PXFWFSPVSHSPXUIJOTBMFT outperformed all of our peers. We also maintained good performance in profts and operating effciency.

Cathay Financial Holdings Financial Cathay 8IJMFXFFYQFSJFODFESBQJECVTJOFTTHSPXUI XFBMTPNBJOUBJOFEBTPVOEGJOBODJBMTUSVDUVSFBOE rigorous risk controls, and again won the recognition of international credit rating agencies in 2014 with an "SBUJOHGSPN.PPEZhT "GSPN41 BOEUX"" GSPN5BJXBO3BUJOHT0VSCVTJOFTTQFSGPSNBODF was also acknowledged by international institutions. We received the Celent Model Insurer Asia Award - Service in 2014. We also won Silver Stevie Awards for Services Company of the Year and Fastest Growing Company of the Year at the Asia-Pacifc Stevie Awards 2014. In addition, we were named Silver Winner in the Company of the Year category and Bronze Winner in the Fastest-Growing Company of the Year category at UIF4UFWJF"XBSET LOPXOBTUIFXPSMEhTQSFNJFSCVTJOFTTBXBSET8FXFSFBMTPOBNFEUIF#FTU/POMJGF Insurance Company in Taiwan by World Finance Magazine for the second consecutive year. The honors we SFDFJWFEEPNFTUJDBMMZJODMVEFUIF*OTVSBODF'BJUI)PQF-PWF"XBSEBOEUIF(PMEFO1FBL"XBSE

8JUISFTQFDUUPPWFSTFBTNBSLFUT TJODFPQFOJOHBOFX4IBOEPOH-JOZJ4VCCSBODIJO $BUIBZ *OTVSBODF $IJOB OPXIBTPGåDFTJODJUJFTJO$IJOB$BUIBZ*OTVSBODF 7JFUOBN IBTBMTPPQFOFEGPS CVTJOFTTJONBKPSDJUJFTJO7JFUOBN JODMVEJOH)P$IJ.JOI$JUZBOE)BOPJ*OUIFGVUVSF XFXJMMDPOUJOVF UPEFWFMPQBRVBMJUZOFUXPSLUPDPOUJOVFUPJODSFBTFQSPåUTBOEPSHBOJ[BUJPOBMTUBCJMJUZ'VSUIFSNPSF XF took an active approach to fulflling our corporate social responsibility in 2014. In addition to taking part in DIBSJUZFWFOUTPSHBOJ[FECZ$BUIBZ'JOBODJBM)PMEJOHT $BUIBZ$FOUVSZ*OTVSBODFFYUFOEFEUIFSFBDIPGJUT "DDJEFOUGSFF$BNQVTQSPKFDU"TPGUIFFOEPG $BUIBZ$FOUVSZ*OTVSBODFIFMEBUPUBMPGTFTTJPOT and reached out to more than 400 classes and close to 10,000 school children. We are the first non-life JOTVSFSUPJODPSQPSBUFUIFQSPHSBN $POUJOVJOH&EVDBUJPO)PVST$FSUJåDBUJPOGPS5FBDIFST CZUIF.JOJTUSZ PG&EVDBUJPOJO5BJXBO5IF;FSP"DDJEFOUT"DBEFNZXFCTJUFXBTMBVODIFEUPSBJTFBXBSFOFTTPGMPTT prevention by vehicle insurance. It is hoped that the website will help improve driving habits and reduce the number of traffc accidents.

-PPLJOHGPSXBSEUP $BUIBZ$FOUVSZ*OTVSBODFXJMMBEIFSFUPUIFEJSFDUJPOPGTUSFOHUIFOJOHUIF PSHBOJ[BUJPOBOEFODPVSBHJOHTFSWJDFJOOPWBUJPO*OBEEJUJPOUPDPOUJOVJOHUPFYQBOEJUTTFSWJDFOFUXPSL and developing outside channels, Cathay Century Insurance will seek to enhance professional skills and lay BTPMJEGPVOEBUJPOGPSHSPXUI.FBOXIJMF $BUIBZ$FOUVSZ*OTVSBODFXJMMPGGFSBEJWFSTJåFESBOHFPGýFYJCMF innovative services to satisfy customer needs and create more value for the company to make it more DPNQFUJUJWF.PSFFYDFMMFOUCVTJOFTTQFSGPSNBODFXJMMCFEFMJWFSFE BOEUIFDIBMMFOHFTPGIJHIFSUBSHFUTCF NFU-BTUMZPOCFIBMGPGNZDPMMFBHVFT *MJLFUPFYQSFTTPVSIFBSUGFMUHSBUJUVEFUPUIFMPOHTUBOEJOHTVQQPSU and assistance of the competent authorities and our customers.

Chairman Cheng-Chiu Tsai

22 Company Profle

Cathay Century Insurance was established in 1993 and became a member of the Cathay Financial Holdings in 2002. By leveraging group resources and providing customers with a full range of financial services, we have secured the position as the second largest non-life insurer in Taiwan since 2007. We BSFBMTPLFFOPOFYQBOEJOHPVSCVTJOFTTJOUPGPSFJHONBSLFUT8FFTUBCMJTIFEBTVCTJEJBSZJO$IJOBBOE 7JFUOBNJOBOE SFTQFDUJWFMZBOEIBWFCFFOVOEFSUBLJOHSBQJEFYQBOTJPOJOUIPTFUXPNBSLFUT eversince. In addition to receiving ISO9001 certification for auto insurance claims and loss prevention TFSWJDFT XFBMTPSFDFJWFEFYDFMMFOUDSFEJUSBUJOHTPGUX"" GSPN5BJXBO3BUJOHT "GSPN41 BOE" GSPN.PPEZhT*O XFHBSOFSFEUIF*OTVSBODF'BJUI)PQF-PWF"XBSE (PMEFO1FBL"XBSE BOE 2VBMJUZ$PNQBOZ#SBWP"XBSE GVSUIFSSFJOGPSDJOHPVSSFDPHOJUJPOCZUIFQFPQMFJO5BJXBOBTUIF/VNCFS 1 "Ideal Brand" in the P&C insurance industry. We also received many internationally acclaimed honors, including Silver Stevie Awards for Services Company of the Year and Fastest Growing Company of the Year at the Asia-Pacifc Stevie Awards and Silver Winner in the Company of the Year category and Bronze Winner in the Fastest-Growing Company of the Year category at the Stevie Awards. We were also named the Best /POMJGF*OTVSBODF$PNQBOZJO5BJXBOCZ8PSME'JOBODF.BHB[JOFGPSUIFTFDPOEDPOTFDVUJWFZFBS QSPWJOH ourselves to be a frst-rate non-life insurer in Asia.

$BUIBZ$FOUVSZ*OTVSBODFIFMEUIFCVTJOFTTVOJUFYFDVUJWFTNFFUJOH

No. of employees 2,030

Average age 37.1

Average years of 7.5 services

Cathay Century Insurance won Silver Stevie Report 2014 Annual Awards for Services Company of the Year and Cathay Century Insurance received the 16th Golden Peak Award Fastest Growing Company of the Year at the 5PQ5FO0VUTUBOEJOH&OUFSQSJTFTPGUIF:FBSBOE5PQ5FO Asia-Pacifc Stevie Awards 2014. Outstanding Products commodities.

23 Overview of Subsidiaries Cathay Century Insurance Co., Ltd.

Board of Directors, Independent Directors, Supervisors and Key Managers

Name Education Experience Cheng-Chiu Tsai ." ,FJP6OJWFSTJUZ +BQBO Chairman, Cathay Century Insurance J.H. Hsu .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ $IBJSNBO $BUIBZ*OTVSBODF$P -UE $IJOB Min-Yang Wu ." (FPSHJB4UBUF6OJWFSTJUZ 64" President, Cathay Century Insurance Board of Directors K.C. Tsai College $IBJSNBO $FOUSBM$POTUSVDUJPO$P -UE $IV:BP-V #" 4IJI)TJO6OJWFSTJUZ 1SFTJEFOU 8FO:J*OWFTUNFOU$P -UE 7JDF1SFTJEFOU $BUIBZ$FOUVSZ*OTVSBODF$IBJSNBO 1JO:BP-JO .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ $BUIBZ*OTVSBODF$P -UE 7JFUOBN

Name Education Experience Chairman, SinoPac Financial Holdings Min-Houng Hong 1I%.JDIJHBO4UBUF6OJWFSTJUZ 64" $IBJSNBO 1BOBTPOJD5BJXBO$P -UE Independent

Cathay Financial Holdings Financial Cathay Country Head of JPMorgan Taiwan and Hong Kong Directors Andrew Ming-Jian M.B.A., Baruch College, City Senior Advisor for Greater China, The Blackstone Group Kuo 6OJWFSTJUZPG/FX:PSL 64" ), -JNJUFE

Name Education Experience 3$4VO Tainan Commercial College $IBJSNBO 4VO$IVBO&OUFSQSJTF-UE Supervisors Ching-Tien Su /BUJPOBM5BJQFJ5FBDIFST$PMMFHF $IBJSNBO 3PZBM$POTUSVDUJPO$PSQ

Position Name Education Executive Chairman Cheng-Chiu Tsai ." ,FJP6OJWFSTJUZ +BQBO Offcer

Position Name Education President Min-Yang Wu ." (FPSHJB4UBUF6OJWFSTJUZ 64" Chief Auditor Chih-I Yu #" /BUJPOBM5BJXBO6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU 1JO:BP-JO .#" /BUJPOBM$IFOHDIJ6OJWFSTJUZ Key 4FOJPS7JDF1SFTJEFOU Chin-Chou Chen ." #FJKJOH6OJWFSTJUZ Managers 4FOJPS7JDF1SFTJEFOU Hui-Pin Wu #" $IJOFTF$VMUVSF6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU Chia-Yuan Hsu ." /BUJPOBM$IFOHDIJ6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU Yi-Min Hu #" 4PPDIPX6OJWFSTJUZ

Business Scope

"MMUZQFTPGOPOMJGFJOTVSBODF JODMVEJOHNPUPS åSF marine, engineering, health, accident, and other MJBCJMJUZBOEQSPQFSUZ BOESFMBUFECVTJOFTT

2015 Operational Targets

$BUIBZ$FOUVSZ*OTVSBODFIPTUFEUIFGPSVNPGFYQFSUTPGIB[BSE 1SFNJVNJODPNF64NJMMJPO perception test system.

24 2014 Revenue Breakdown

6OJU.JMMJPO64%

Item Amount % of Total ■ 3FUBJOFEFBSOFEQSFNJVNJODPNF 426.93 93.81 ■ 3FJOTVSBODFDPNNJTTJPOJODPNF 12.37 2.72 ■ Fees income 1.19 0.26 ■ /FUJOWFTUNFOUHBJO MPTT 14.62 3.21 Total income 455.11 100 /5%64%

2015 Business Plan

Objective 1: Expand distribution network and Objective 3: Recruit professional talents and improve operating effciency expand in overseas markets &YQBOEPQFSBUJPOTJOBMMEJTUSJCVUJPODIBOOFMT 1. Strengthen personnel cost management BOEJODSFBTFFGGPSUTUPSFDSVJUFYDFMMFOUTBMFT and resource allocation and invest in training talent to enhance the depth and breadth of professionals specialized in various areas and channel distribution to improve productivity. their ability to work in different countries. Improve 2. Keep abreast of economic trends in the industry FNQMPZFFThNBOBHFNFOULOPXMFEHFBOETLJMMT BOEEFWFMPQDMVTUFSQSPKFDUTUPQSPNPUF to meet the demands of the global insurance regional customer relationship management. market. &OGPSDFUIFBQQPJOUNFOUTZTUFNGPSDPNNFSDJBM 5BLFBQSVEFOUBQQSPBDIUPFYQBOEJOHJOUIF insurance to facilitate introduction of new types JOTVSBODFNBSLFUTJO$IJOBBOE7JFUOBN JNQPTF of commercial insurance. TUSJDURVBMJUZDPOUSPMBOEEFWFMPQBRVBMJUZ 3. Continue to optimize IT systems and improve network, and enhance business performance to QSPDFTTFTUPNBYJNJ[FIVNBOSFTPVSDFT achieve proftability and organizational stability. NBOBHFNFOUBOESFJOGPSDFTBMFTRVBMJUZ 4FUVQPGGTIPSFJOTVSBODFVOJUT 0*6 BOE BTTVSBODF&GGFDUJWFMZDPOUSPMFYQFOTFTUPSFEVDF introduce more services from overseas to the composite rate and increase proftability. JODSFBTFUIFDPNQBOZhTBCJMJUZUPDPNQFUF Objective 2: More extended use of digital worldwide and visibility. technology and provide premium services Objective 4: Improve risk management and 1. Continue to campaign for claim reform to increase investment performance JNQSPWFUIFDPNQBOZhTPQFSBUJOHFGåDJFODZBOE UIFRVBMJUZPGDVTUPNFSTFSWJDFTUPFOIBODFB 1. Make appropriate reinsurance arrangements and positive brand image. reinforce reinsurance management capability to balance new services and risks. 2. Improve digital services by allowing members to QVSDIBTFDPWFSBHFPOMJOF&ODPVSBHFDVTUPNFST $POUJOVFUPPQUJNJ[FRVBOUJUBUJWFSJTLNFUIPET and agents to adopt mobile applications. Invest and improve risk management practices to in official websites and social communities to FOIBODFSJTLTVSWFJMMBODF3FJOGPSDFBTTFUSJTL boost brand recognition. management and process controls and enforce 3. Play an active role in charity events and promote compliance protocols. the concept of loss prevention in insurance. 3. Keep abreast of macroeconomic trends &OSJDIDPOUFOUPOUIF;FSP"DDJEFOUT"DBEFNZ worldwide and utilize resources of the Group.

website and help drivers change bad driving Strengthen investment strategies to make timely Report 2014 Annual habits. Fulfill corporate social responsibility and BEKVTUNFOUTUPPQUJNBMBTTFUBMMPDBUJPOXJUIB JNQSPWFUIFDPNQBOZhTJNBHFBOEWJTJCJMJUZ focus on stable, long term investments.

25 Overview of Subsidiaries Cathay Securities Corporation

Message from the Chairman

-PPLJOHCBDLBU XFDBOTFFJUXBTBZFBSPGDIBOHFJOUFSNTPGNBSLFUBTXFMMBTFDPOPNJD conditions. The changes pushed the familiar world to move in different directions. As central banks around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hTTUPDLNBSLFUTCFOFåUFEGSPNUIFMBVODIPGUIF Shanghai-Hong Kong Stock Connect and fnancial deregulation policies, and reported positive performance JOUIFTFDPOEIBMGPGUIFZFBS5BJXBOhTTUPDLNBSLFUGPMMPXFEUIFSJTJOHTUPDLNBSLFUTJO$IJOBBOEUIF64 BOESPTFGSPN BUUIFCFHJOOJOHPGUIFZFBSUP 5IFBWFSBHFEBJMZUSBEJOHWPMVNFGPS584& (54.MJTUFEDPNQBOJFTJNQSPWFENVDIGSPNUIFVOEFS/5CJMMJPOåHVSFTJOUIFMBTUUXPZFBST BOE Cathay Financial Holdings Financial Cathay BQQSPBDIFEUIFEFDBEFBWFSBHFPG/5CJMMJPO

5IFSFDPWFSJOHNBSLFUDSFBUFEFYDFMMFOUPQQPSUVOJUJFTGPSUIFTFDVSJUJFTCVTJOFTT$BUIBZ4FDVSJUJFT followed the philosophy of "Integrity, Accountability and Creativity", and the concerted efforts of all our DPMMFBHVFTQBJEPGGGVMMZVOEFSTVDIGBWPSBCMFDPOEJUJPOTJO0VS&14XBT/5 BOEOFUQSPGJU CFGPSFUBYXBT/5NJMMJPO5IFNBSLFUTIBSFPGPVSCSPLFSBHFCVTJOFTTCSPLFBOFXIJHIGPSUIFTJYUI ZFBSJOBSPXJOBOESPTFUPGPSUIFXIPMFZFBS HSPXJOHBTDPNQBSFEUPUIFZFBSCFGPSF*O PVSVOEFSXSJUJOHCVTJOFTT XFVOEFSXSPUF*10BOE410MJTUJOHT BOESBOLFE/PJOUIFNBSLFUJOUFSNT PGOVNCFSPGDBTFTTVCNJUUFEPS/PJOUFSNTPGBNPVOUVOEFSXSJUUFO TFDVSJOHPVSQPTJUJPOBTPOFPGUIF top ten underwriters. The offshore banking business showed skyrocketing growth for a second consecutive ZFBS5IFBOOVBMUSBEJOHWBMVFPGPVSTVCCSPLFSBHFCVTJOFTTSFBDIFE/5CJMMJPO SBOLJOH/PJOUIF industry. While we turned in a strong business performance, we continued to pay attention to providing services consistent with the needs and habits of our customers. We worked hard in 2014 to improve the RVBMJUZBOEEFQUIPGTFSWJDFTPOPVSF$PNNFSDFBOENPCJMFQMBUGPSNT3FHBSEJOHNPCJMFTFSWJDFT BOFX generation of the Cathay Genie App was launched with an interface that emphasizes "swiping is faster". We BMTPJOUSPEVDFEUIFåSTU4UPDL-PUUFSZ"QQJOUIFJOEVTUSZ5IFBQQJTBJNFEBUJOWFTUPSTXIPQMBZUIFTUPDL lottery.

*O UIF(SFFDFEFCUDSJTJTXJMMDPOUJOVFJO&VSPQF XIJMF$IJOBhTFDPOPNZTMPXTBOEQPMJUJDBM unrest persists in different parts of the world. However, economic and market conditions are all moving in a positive direction, and people tend to focus on changes in the future. The year 2015 is full of opportunity, and we must take advantage of the upward trends. We will sharpen our advantages in different areas of PVSCVTJOFTT BOEBEKVTUEFWFMPQNFOUTUSBUFHJFTGSPNJOTJEFPVUUPNFFUDVTUPNFSThEFNBOEGPSOFXBOE better services. For our brokerage business, we will integrate personal and institutional services to ensure more effective resource utilization. With respect to underwriting, our underwriting team will implement more standardized electronic processes to provide more effcient services. With regards to fnancial trading, XFXJMMGPDVTPOFYQBOEJOHBSCJUSBHFUSBEJOHBOEUIFJTTVBODFPGXBSSBOUT*OOFXNBSLFUEFWFMPQNFOU having established a fnancial consulting frm in Shanghai, China, we have plans to open an offce in Hong Kong this year in order to provide integrated securities services in Greater China.

Cathay Securities Corporation has grown stronger through the concerted efforts of all our colleagues in 2014. I sincerely hope that we will adopt the same positive attitude in the new year and meet and overcome FWFSZOFXDIBMMFOHF8FXJMMCFDPNNJUUFEUPTFSWJOHPVSDVTUPNFST EFMJWFSJOHBOPUIFSZFBSPGFYDFMMFOU performance for the company and the Group, and creating long term benefts for our shareholders.

Chairman Shih-Ting Chu

26 Company Profle

Cathay Securities Corporation is a member of Cathay Financial Holdings. We have paid-in-capital of 64NJMMJPO FNQMPZFFTBOEBOPQFSBUJPOBMOFUXPSLDPNQPTFEPGBIFBEPGåDF UFOCSBODIFT BOE 23 cross marketing securities offces in branches. Our businesses cover brokerage, underwriting, proprietary trading, and the issuance of fnancial derivatives.

*O XFXJMMGPDVTPOUIFGPMMPXJOHCVTJOFTTPQFSBUJPOT8JUISFTQFDUUPSFUBJMCSPLFSBHF XFXJMM enhance collaboration with other subsidiaries under Cathay Financial Holdings in cross-selling and through TVCCSPLFSBHFBOE046TFSWJDFT TFUVQBQMBUGPSNUPPGGFSDVTUPNFSTDPNQSFIFOTJWFåOBODJBMQMBOOJOH services. We will invest in the development of digital securities services by creating software that is portable device based and meets customer needs regarding trading and account administration. We will enhance the depth of our services by offering customized services to increase orders placed by institutional investors. 8JUISFTQFDUUPåOBODJBMQSPEVDUT XFXJMMFYQBOEPVSXBSSBOUPQFSBUJPOTBOEJODSFBTFUIFNBSLFUJOHPGPVS warrant business to increase trading volume. With respect to bond operations, we will maintain the fnancial DPOTVMUBOUCVTJOFTTNPEFM BOEFYQBOEPVSJOUFSOBUJPOBMCPOEPQFSBUJPOT8JUISFTQFDUUPQSPQSJFUBSZ trading, we will improve our arbitrage strategies, participate more actively in futures market-making, and implement broader development strategies to increase investment returns. With respect to underwriting, we will leverage Group resources to win more benchmark cases and overseas clients that plan to list on 5BJXBOhTTUPDLNBSLFU8FBMTPQMBOUPPGGFSBWBSJFUZPGTFSWJDFTGPSDMJFOUTJO(SFBUFS$IJOBBSFB JODMVEJOH QSJWBUFQMBDFNFOUTBOENFSHFSTBOEBDRVJTJUJPOT

-PPLJOHJOUPUIFGVUVSF XFXJMMDPOUJOVFUPIPMEPOUPUIFDPSFWBMVFTPGUIF(SPVQUIBUFNCSBDFUIF corporate spirit of “Integrity, Accountability and Creativity” and prudently promote various businesses.

No. of employees 542

Average age 38.2

Average years of 3.7 services

Cathay Securities launched the Cathay Genie App for Android.

$BUIBZ4FDVSJUJFTTJHOFEB.06XJUI.BZCBOL,JN&OH Cathay Securities won frst place in Contributions and second place

Securities of Malaysia. Report 2014 Annual JO8FJHIUTBUUIF&5'5SBEJOH$PNQFUJUJPOGPS4FDVSJUJFT Brokers. $BUIBZ4FDVSJUJFTIFMEUIF&NQMPZFFTPG the Year" award ceremony.

27 Overview of Subsidiaries Cathay Securities Corporation

Board of Directors, Independent Directors, Supervisors and Key Managers

Name Education Experience Shih-Ting Chu ." /BUJPOBM5BJXBO6OJWFSTJUZ Chairman, Cathay Securities Corporation M.B.A., Massachusetts Institute of Shun-Yu Chuang President, Cathay Securities Corporation Board of 5FDIOPMPHZ 64" Directors Tsu-Jien Cheng #" )BNJMUPO$PMMFHF 64" 4FOJPS7JDF1SFTJEFOU $BUIBZ4FDVSJUJFT$PSQPSBUJPO )VOH)VFJ-JBP ." /BUJPOBM5BJXBO6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU $BUIBZ4FDVSJUJFT$PSQPSBUJPO +JOO4IJOH-FPV ." 6OJWFSTJUZPG*PXB 64" Chairman, Cathay Securities Corporation

Name Education Experience 1I%$BOEJEBUF /JIPO6OJWFSTJUZ Director, First Financial Holdings Tsing-Yuan Hwang Japan %JSFDUPS )PO)BJ1SFDJTJPO*OEVTUSZ$P -UE Independent Country Head of JPMorgan Taiwan and Hong Kong Directors Andrew Ming-Jian M.B.A., Baruch College, City Senior Advisor for Greater China, The Blackstone Group

Cathay Financial Holdings Financial Cathay Kuo 6OJWFSTJUZPG/FX:PSL 64" ), -JNJUFE

Name Education Experience Wan-Chie Ma ." 5BNLBOH6OJWFSTJUZ Supervisor, Cathay Securities Supervisors Chi-Chang Huang ." $PMVNCJB6OJWFSTJUZ 64" 4FOJPS7JDF1SFTJEFOU $BUIBZ6OJUFE#BOL

Position Name Education Executive Chairman Shih-Ting Chu ." /BUJPOBM5BJXBO6OJWFSTJUZ Offcer

Position Name Education President Shun-Yu Chuang .#" .BTTBDIVTFUUT*OTUJUVUFPG5FDIOPMPHZ 64" 4FOJPS&YFDVUJWF7JDF1SFTJEFOU Tsu-Jien Cheng #" )BNJMUPO$PMMFHF 64" Key Managers 4FOJPS&YFDVUJWF7JDF1SFTJEFOU )VOH)VFJ-JBP ." /BUJPOBM5BJXBO6OJWFSTJUZ ." /BUJPOBM,BPITJVOH'JSTU6OJWFSTJUZPG4DJFODF 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $IFO)VOH-JO and Technology

Business Scope

1.Securities underwriting 9.Wealth management - fnancial products advisory or sales services %FBMJOHPGTFDVSJUJFTPODFOUSBMFYDIBOHF 10.Brokerage trading of foreign securities - sub- 3.Brokerage trading of securities on central broker FYDIBOHF 11.Introducing futures brokering 4.Dealing of over-the-counter securities 12.Futures business 5.Brokerage trading of over-the-counter securities 13.Other securities-related businesses approved by 6.Margin fnancing and stock lending the regulator. 3FHJTUSBSBOEUSBOTGFSTFSWJDFT 4FDVSJUJFTMFOEJOH FYDFQUGPSCPPLFOUSZDFOUSBM HPWFSONFOUCPOET

28 2015 Business Plan

1.Combine channel resources from banking and life &YQBOEUIFXBSSBOUCVTJOFTTBOEEFWFMPQ JOTVSBODFOFUXPSLT*OUSPEVDFBOEFYQBOEDSPTT multimarket trading and arbitrage strategies to marketing operations that focus on customer maintain stable profts. services. &TUBCMJTIBOVOEFSXSJUJOHCSBOEBOECVJMEVQ 2.Optimize sales team and diversify the product benchmarks and an international underwriting portfolio to enhance business performance. client base.

3.Develop a portable device based digital trading 3FTQPOEUPDIBOHJOHNBSLFUDPOEJUJPOTBOE platform to effectively reach out to the digital NPSFSFMBYFEQPMJDJFTBOEBTTFTTOFXNBSLFUT generation through social networking. and new lines of businesses. *NQSPWFSFTFBSDIRVBMJUZBOEDVTUPNJ[FETFSWJDFT and maintain relationship with institutional clients in Taiwan and abroad.

2015 Operational Targets

Item Targets Market share of brokerage business /VNCFSPGMFBEVOEFSXSJUJOHDBTFT 14 /VNCFSPGXBSSBOUTJTTVFE 792 2014 Annual Report 2014 Annual

$BUIBZ4FDVSJUJFTPQFOFE$BUIBZ*OWFTUNFOU$POTVMUJOH 4IBOHIBJ $P -UE Cathay Securities and Kuo Brothers held a signing ceremony and had photos in Shanghai. taken with guests.

29 Overview of Subsidiaries Cathay Securities Investment Trust Co., Ltd.

Message from the Chairman

"TTVCUMFDIBOHFTUPPLQMBDFJOUIFHMPCBMFDPOPNZBOEJOQPMJUJDTJO UIF64FDPOPNZUVSOFE PVUUPCFUIFNPTUDPOTJTUFOUUPQQFSGPSNFS5IF64TUPDLNBSLFUTLFQUSJTJOHUPSFDPSECSFBLJOHIJHITBT BSFTVMU5IF64'FEFSBM3FTFSWFIBTEFDJEFEUPFOEUIFRVBOUJUBUJWFFBTJOHQSPHSBNUIBUIBTCFFOHPJOH POGPSTFWFSBMZFBST*ODPOUSBTU &VSPQF +BQBO BOE$IJOBXFSFGPSDFECZFDPOPNJDTMPXEPXOUPFBTFUIFJS monetary policies. China lowered its interest rate for the frst time in more than two years, initiating a cycle PGJOUFSFTUSBUFDVUT$POTFRVFOUMZ $IJOBhTTUPDLNBSLFUTFOEFEVQUIFTUSPOHFTUEBSLIPSTFCZSFQPSUJOH BOBOOVBMJODSFBTFPG*O5BJXBO UIFFDPOPNZTUBSUFEXJUIBOVQXBSEUSFOEBUUIFCFHJOOJOHPGUIF ZFBSBOEUIFOXFOUEPXOIJMM5IFNVOJDJQBMJOFMFDUJPOJO/PWFNCFSDBVTFEUIFTUPDLNBSLFUUPGBMM TMJHIUMZBUUIFFOEPGUIFZFBS-PPLJOHGPSXBSEUP UIFHMPCBMFDPOPNZIBTUIFDIBODFUPIPMEPOUP TMPXCVUTUFBEZHSPXUIVOEFSRVBOUJUBUJWFFBTJOHQPMJDJFTBEPQUFECZEJGGFSFOUHPWFSONFOUTBOETUFBEZ HSPXUIJOUIF6OJUFE4UBUFT

5PUBMBTTFUTVOEFSUIFNBOBHFNFOUPG$BUIBZ4FDVSJUJFT*OWFTUNFOU5SVTU $4*5 XBT64CJMMJPO Cathay Financial Holdings Financial Cathay in 2014, securing our position as the largest securities investment trust company in Taiwan. Guided by UIFDPSFWBMVFPGCBTFEJO5BJXBOBOEPQFSBUJOHUISPVHIPVU(SFBUFS$IJOB $4*5UVSOFEJOFYDFQUJPOBM performance in our Greater China investments. In addition to being the first securities investment trust DPNQBOZUPCFHSBOUFEBMJDFOTFUPUSBEFJO$IJOBhTJOUFSCBOLCPOENBSLFU $4*5XPOUIF#FTU*OTUJUVUJPOBM )PVTFJO5BJXBOBOEUIF#FTU%PNFTUJD&RVJUZ'VOEJO5BJXBOBU"TJB"TTFU.BOBHFNFOUhT#FTU PGUIF#FTU"XBSET5IFTUSBUFHZPGCFDPNJOHBOFYQFSUPO(SFBUFS$IJOBhTNBSLFUTTUBSUFETIPXJOH TJHOTPGTVDDFTTUIJTZFBS$4*5hT(SFBUFS$IJOBQSPEVDUT JODMVEJOH$IJOBFRVJUZGVOET CPOEGVOET BOE 3.#NPOFZNBSLFUGVOET IBWFCFFOXFMMSFDFJWFECZUIFNBSLFU"MMPGUIFBCPWFEFNPOTUSBUF$4*5hT BCJMJUZUPDBQUVSFPQQPSUVOJUJFTJO$IJOBhTDBQJUBMNBSLFUTBOEUPDSFBUFQSPGJUTGPSJUTDVTUPNFST*OUIF GVUVSF $4*5QMBOTUPGPDVTPO$IJOBFRVJUZ&5'TBOEUIFQSPNPUJPOBOEJTTVBODFPG(SFBUFS$IJOB6$*54 'VOETBWBJMBCMFJO0&$%DPVOUSJFT5PHFUIFSXJUIUIFGVMMMJOFPG5BJXBOFTFFRVJUZGVOETDVSSFOUMZBWBJMBCMF BOEXFMMFTUBCMJTIFEJOTJ[F $4*5DBOCFTBJEUPCFPGGFSJOHBNPSFDPNQMFUFMJOFPGFRVJUZCPOEBOE BDUJWFQBTTJWFQSPEVDUTJO(SFBUFS$IJOB5IFHPBMSFNBJOTUPLFFQ$4*5JOBMFBEJOHQPTJUJPOJO(SFBUFS China.

-PPLJOHCBDLUPPVSCFHJOOJOHJO'FCSVBSZ $4*5JTBCPVUUPFOUFSJUTGJGUFFOUIZFBSJO CSIT, having started late in the game, has been growing fast. The concerted efforts of all our colleagues IBWFESJWFO$4*5VQUIFSBOLJOHTBOEFTUBCMJTIFEUIFDPNQBOZBTPOFPGUIFMFBEFST-PPLJOHJOUPUIF future, CSIT will continue to grow. Guided by the strategic direction of turning asset management into the UIJSEQSPåUFOHJOFPGUIF(SPVQ XFXJMMDPOUJOVFUPTUSFOHUIFOPVSFYJTUJOHGPVOEBUJPOBOECVJMEPOPVS DPNQFUJUJWFOJDIFT.PSFPWFS XFXJMMMFWFSBHF(SPVQSFTPVSDFTUPNBYJNJ[FSFTVMUTBOEJNQSPWFNBSLFUJOH results in product management, channel sales, and advertising to achieve rapid growth.

Following the core values of "Integrity, Accountability and Creativity", Cathay Financial Holdings has long been a synonym for solidity, reliability and steadfastness in the minds of the people in Taiwan. With the strong support and positive image of the Group, CSIT has been able to grow and fourish in a short dozen years. We will continue to maintain our commitment to providing customers with the best asset management service.

-BTUMZPOCFIBMGPGNZDPMMFBHVFT *MJLFUPFYQSFTTPVSIFBSUGFMUHSBUJUVEFUPUIFDPNQFUFOUBVUIPSJUJFT and our customers for their longstanding support and assistance. We will continue to enhance our business QFSGPSNBODFBOEDPNQBOZWBMVF QVSTVFFYDFMMFODFBOEDSFBUFWBMVF BOEQSPWJEFDVTUPNFSTXJUIGVMM fedged and in-depth services to strive toward creating a third proft engine for Cathay Financial Holdings.

Chairman Jeff Chang

30 Company Profle

$BUIBZ4FDVSJUJFT*OWFTUNFOU5SVTU $4*5 XBTFTUBCMJTIFEJO'FCSVBSZBOEJTOPXBXIPMMZ PXOFETVCTJEJBSZPG$BUIBZ'JOBODJBM)PMEJOHT8FIBWFQBJEJODBQJUBMPG64NJMMJPO FNQMPZFFT and a business network composed of Taipei Head Offce and Hsinchu, Taichung and Kaohsiung Branches. Our businesses cover securities investment trust, discretionary investment, securities investment consultant, futures trust and other businesses approved by the regulatory authorities. Assets under our management, including publicly offered funds, privately placed funds, futures trust funds and discretionary accounts, with BUPUBMWBMVFPG64CJMMJPO UIFIJHIFTUJOUIFJOEVTUSZ8FIBWFBQSPGFTTJPOBMUFBNDPNQSJTJOH SFTFBSDIFST JODMVEJOHGVOENBOBHFST XJUIBOBWFSBHFPGUXFMWFZFBSTBOEGJWFNPOUITPGFYQFSJFODFJO related felds and we have won more than 36 domestic and foreign fund awards since 2005.

In 2015, we will continue to harness our business operations and strengthen collaboration with other NFNCFSTPGUIF$BUIBZ'JOBODJBM)PMEJOHTJOUIFIPQFUPDSFBUFUPHFUIFSNBYJNVNWBMVFGPSUIF$BUIBZ Group as a whole.

No. of employees 258

Average age 39

Average years of 5.6 services

CSIT held the press conference for the Cathay Global Multiple Income Balanced Fund. 2014 Annual Report 2014 Annual

31 Overview of Subsidiaries Cathay Securities Investment Trust Co., Ltd.

Directors, Supervisors, and Key Managers

Name Education Experience Jeff Chang .4 /BUJPOBM$IFOH,VOH6OJWFSTJUZ Chairman, Cathay Securities Investment Trust Andy Chang .#" /BUJPOBM$FOUSBM6OJWFSTJUZ President, Cathay Securities Investment Trust 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ4FDVSJUJFT Peter Chiang #" /BUJPOBM$IVOH)TJOH6OJWFSTJUZ Board of Investment Trust Directors 4FOJPS&YFDVUJWF7JDF1SFTJEFOU $BUIBZ4FDVSJUJFT Solon Huang .#" /BUJPOBM5BJXBO6OJWFSTJUZ Investment Trust M.B.A., Massachusetts Institute of Joseph Wang 7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF 5FDIOPMPHZ 64"

Name Education Experience Manager of Accounting Department, Financial Supervisors 3VJ)POH)POH #"4PPDIPX6OJWFSTJUZ Division, Cathay Financial Holdings Cathay Financial Holdings Financial Cathay

Position Name Education Executive Chairman Jeff Chang .4 /BUJPOBM$IFOH,VOH6OJWFSTJUZ Offcer

Position Name Education President Andy Chang .#" /BUJPOBM$FOUSBM6OJWFSTJUZ 4FOJPS&YFDVUJWF7JDF Peter Chiang #" /BUJPOBM$IVOH)TJOH6OJWFSTJUZ President 4FOJPS&YFDVUJWF7JDF Solon Huang .#" /BUJPOBM5BJXBO6OJWFSTJUZ President

Key 4FOJPS7JDF1SFTJEFOU Jing-Hui Hsieh ." /BUJPOBM$FOUSBM6OJWFSTJUZ Managers 4FOJPS7JDF1SFTJEFOU Y. H. Chang #" 5VOHIBJ6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU Hui-Huan Hsieh .#" .BOLBUP4UBUF6OJWFSTJUZ 64" 4FOJPS7JDF1SFTJEFOU Jessica Yueh .#" 6OJWFSTJUZPG4PVUI"VTUSBMJB "VTUSBMJB 1I% 5JBOKJO/BOLBJ6OJWFSTJUZ*OTUJUVUFPG#VTJOFTT 4FOJPS7JDF1SFTJEFOU Doris Yang Management 4FOJPS7JDF1SFTJEFOU /BJZVO:JO ." 6OJWFSTJUZPG0SFHPO

0QFOMPUESBXJOHGPSTDIPMBSTIJQGPSDIJMESFOPG$BUIBZ'JOBODJBM)PMEJOHThDVTUPNFST

32 Business Scope 2015 Business Plan

1. Securities investment trust business. 1.Develop new products and investment strategies to provide customers with the best products and 2. Discretionary investment business. meet their needs.

3. Securities investment consultant business. 2.Seek long-term, stable and outstanding performance in fund management and for discretionary account 4. Futures trust business. customers. 5. Other business approved by the Financial 3.Integrate group resources to actively develop Supervisory Commission. related businesses.

2015 Operational Targets

"TTFUT64CJMMJPO

$4*5PGGFSFEUIFJOWFTUNFOUTFNJOBS )JHIMJHIUTPG/FX$IJOB CSIT participated in the Best Fund Community Charity and donated an ambulance. 2014 Annual Report 2014 Annual

$BUIBZ/#":PVUI.BEOFTT'JOBMT CSIT held a press conference to advertise the Cathay Asian Growth Fund.

33 Overview of Subsidiaries Cathay Venture Inc.

Company Profle

5IF$PNQBOZhTNBJOCVTJOFTTFTBSFJOWFTUJOHJOVOMJTUFEDPNQBOJFTXJUIHSPXUIQPUFOUJBM BOE BTTJTUJOHJOUIFEFWFMPQNFOUPGUIPTFDPNQBOJFTGPSUIFQVSQPTFPGNBYJNJ[JOHSFUVSOPOJOWFTUNFOU

Business Scope

7FOUVSFDBQJUBMCVTJOFTT Cathay Financial Holdings Financial Cathay

Directors, Supervisors, and Key Managers

Position Name Education Experience $IBJSNBO 4ZNQIPY*OGPSNBUJPO$IBJSNBO Chairman Jen-Ho Chang .4D 8BSXJDL6OJWFSTJUZ 6, "MMZ-PHJTUJD1SPQFSUZ Board of Directors 4IBO$IJ-JV ." /BUJPOBM5BJXBO6OJWFSTJUZ 7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF M.A., Massachusetts Institute of Board of Directors :*546/(8"/( 7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF 5FDIOPMPHZ 64" .#" 6OJWFSTJUZPG*MMJOPJTBU6SCBOB Board of Directors Yi-Fang Tsai 4FOJPS7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF $IBNQBJHO 64" Board of Directors +PF-JO ." /BUJPOBM5BJXBO6OJWFSTJUZ 4FOJPS7JDF1SFTJEFOU $BUIBZ-JGF*OTVSBODF M.B.A., Massachusetts Institute of Supervisors Shun-Yu Chuang President, Cathay Securities Corporation. 5FDIOPMPHZ 64"

Chief Executive Offcer and Key Managers

Position Name Education Chairman Jen-Ho Chang .4D 8BSXJDL6OJWFSTJUZ 6, President Jen-Ho Chang .4D 8BSXJDL6OJWFSTJUZ 6,

34 2014 Revenue Breakdown

6OJUUIPVTBOE64%

Item Amount % of Total ■ Management consulting fees 277.98 3.06 ■ Securities sales and investment income 8,791.49 96.78 ■ Interest and other income 14.59 0.16 Total 9,084.06 100.00

Four investment themes in 2015

1. Secure strategic positions in biotech and healthcare.

2. Increase investment in technological innovation, cloud computing, and the internet of things.

3. Invest in products and services with elements of culture and creativity.

&YQMPSFPQQPSUVOJUJFTJO$IJOBhTEPNFTUJDNBSLFU 2014 Annual Report 2014 Annual

35 Overseas Branches and Ofﬁces

● Cathay Life Cathay Lujiazui Life Cathay Life Insurance Hong Kong Branch Insurance Co., Ltd. (Vietnam) Co., Ltd. "EESFTTUI'MPPS -)55PXFS Insurance /P2VFFO’T3PBE$FOUSBM Guangdong Branch (Ho Chi Minh City Head Central, Hong Kong "EESFTT'/P %POHGFOH9J Offce) 5FM 'BY 3PBE :VFYJV%JTUSJDU (VBOH[IPV "EESFTT5IF8PSME$FOUFS#VJMEJOH Cathay Lujiazui Life $JUZ (VBOHEPOH1SPWJODF 13$ 9th foor, 46-48-50 Pham Hong Thai Insurance Co., Ltd. 2JBOTIV1BOGV#VJMEJOH Street, District 1, Ho Chi Minh City, Singapore Branch ;*1 7JFUOBN "EESFTT3BGýFT2VBZ Shanghai Headquarters 5FM NBJOMJOF 5FM 'BY Singapore 048580 "EESFTT' #VJMEJOH# 0SJFOUBM 'BY 5FM Financial Plaza, 1168 Century 8FCTJUFXXXDBUIBZMJGFDPNWO 'BY #PVMFWBSE 1VEPOH/FX"SFB 4IBOHIBJ 13$ Cathay Life Insurance Cathay Lujiazui Life Chu Lai Branch, Vietnam ;*1 (Vietnam) Co., Ltd. 5FM NBJOMJOF Insurance Co., Ltd. "EESFTT/P 5SBO2VZ$BQ 'BY Liaoning Branch Hanoi Branch 5BN,Z$JUZ 2VBOH/BN1SPWJODF 8FCTJUFXXXDBUIBZMJGFDO "EESFTT#VJ5IJ9VBO )BJ#B 7JFUOBN "EESFTTBOE #MPDL 5FM_ % 'PSUVOF$FOUFS /P /PSUI Trung Dist., Hanoi City 5FMoo 'BY_ 4UBUJPO3PBE 4IFOIF%JTUSJDU 'BYoo Cathay Lujiazui Life 4IFOZBOH -JBPOJOH1SPWJODF 13$ Insurance Co., Ltd. ;*1 Shanghai Branch 5FM NBJOMJOF Cathay Life Insurance "EESFTT4VJUF #&"'JOBODF

Cathay Financial Holdings Financial Cathay Jiangsu Branch 'BY (Vietnam) Co., Ltd. 5PXFS /P)VBZVBOTIJRJBP3PBE "EESFTT' #VJMEJOH" +JO4IBO Da Nang Branch 1VEPOH/FX%JTUSJDU 4IBOHIBJ #VJMEJOH /P 4IBOYJ3E (VMPV 200120, China %JTUSJDU /BOKJOH +JBOHTV 13$ "EESFTTUIýPPS 4BDPNCBOL 5FM ;*1 Cathay Lujiazui Life Building, 130-132 Bach Dang Street, 'BY 5FM NBJOMJOF Insurance Co., Ltd. )BJ$IBV%JTUSJDU %B/BOH$JUZ 'BY 5FM Tianjin Branch 'BY Shanghai Minhang "EESFTT' #VJMEJOH# +VO-VOH Sub-Branch Cathay Lujiazui Life 4RVBSFBU/P /BOKJOH3PBE Cathay Life Insurance "EESFTT3PPN ' /JLPT )PQJOH%JTUSJDU 5JBOKJO 13$ (Vietnam) Co., Ltd. #VJMEJOH /0)POHYV3PBE Insurance Co., Ltd. Zhejiang ;*1 Can Tho Branch Minhang District, Shanghai 201103 Branch 5FM ,China 'BY "EESFTTUIýPPS #)PB#JOI 5FM "EESFTT' 4BOYJO:JO[VP /P #PVMFWBSE 5BO"O8BSE /JOI,JFV 'BY $IJV5BP/P3PBE +JBOH(BOH District, Can Tho City %JTUSJDU )BOH[IPV ;IFKJBOH 13$ 5FM ;*1 Cathay Lujiazui Life 'BY Shanghai Pilot Free Trade 5FM NBJOMJOF Insurance Co., Ltd. Zone Sub-Branch 'BY Xiamen Branch Cathay Life Insurance "EESFTT3PPN /P +JB (Vietnam) Co., Ltd. 'FOH3PBE 1VEPOH/FX"SFB "EESFTT' #VJMEJOH" 4JOPUSBOT Shanghai , China Cathay Lujiazui Life 0QFSBUJPO$FOUFS /P 9JB Dong Nai Branch 5FM Insurance Co., Ltd. )F3PBE 4J.JOH%JTUSJDU 9JBNFO "EESFTT$/HVZFO"J2VPD 5BO 'BY 'VKJBO 13$ 5JFO8BSE #JFO)PB %POH/BJ$JUZ Fujian Branch ;*1 5FM 5FM Qingdao Branch "EESFTT3PPN 'MPPS %POH 'BY 'BY 5B#VJMEJOHPG-JKJB4RVBSF /PPG "EESFTT3PPN ' /P )POH,POH.JEEMF3PBE :BOHRJBP&BTU3PBE (VYJ4USFFU Cathay Life Insurance Shinan District, Qingdao, Shandong (VMPV%JTUSJDU 'V[IPV$JUZ 13$ (Vietnam) Co., Ltd. 266071, China ;*1 Beijing 5FM 5FM NBJOMJOF Hai Phong Branch Representative Offce 'BY 'BY "EESFTTUIýPPS4BDPNCBOL "EESFTT6OJU ' #VJMEJOH# Building, 62- 64 Ton Duc Thang 1BSLWJFX(SFFO#VJMEJOH /P 4USFFU -F$IBO%JTUSJDU )BJ1IPOH Vientiane Capital Branch Cathay Lujiazui Life %POHEBRJBP3PBE $IBPZBOH City "EESFTT/P 5VU.BJ3E %JTUSJDU #FJKJOH 13$ 5FM )BUTBEZ7JMMBHF $IBOUIBCPVMZ Insurance Co., Ltd. ;*1 'BY %JTUSJDU 7JFOUJBOF$BQJUBM -BPT1%3 Beijing Branch 5FM 5FM 'BY 'BY "EESFTT' +JBIF(VPYJOH ● #VJMEJOH /P #BJRJBP#PVMFWBSE Cathay United %POHDIFOH%JTUSJDU #FJKJOH 13$ Kuala Lumpur ;*1 Hong Kong Bank Marketing Offce 5FM NBJOMJOF Representative Offce 'BY Los Angeles Agency "EESFTT-PU" UI'MPPS 6#/ "EESFTT' -)55PXFS 5PXFS +BMBO13BNMFF 2VFFOhT3PBE$FOUSBM $FOUSBM "EESFTT8JMTIJSF#MWE 4VJUF ,VBMB-VNQVS .BMBZTJB Hong Kong -PT"OHFMFT $" 64" 5FM Cathay Lujiazui Life 5FMFYU 5FM 'BY Insurance Co., Ltd. 'BY 'BY Shandong Branch Labuan Branch Manila "EESFTT'4,.PEFSO$JUZ /P "EESFTT-FWFM $ .BJO0GåDF Representative Offce -VPZVBO4USFFU -PXFS%JTUSJDU Tokyo Offce 5PXFS 'JOBODJBM1BSL-BCVBO "EESFTT6OJU" ' $JUJCBOL $IJOBO 4IBOEPOH1SPWJODF 13$ "EESFTT',/(JO[B#VJMEJOH $PNQMFY +BMBO.FSEFLB $FOUFS1BTFPEF3PYBT.BLBUJ ;*1 1-15-6, Ginza, Chou-Ku, Tokyo -BCVBO'5 .BMBZTJB City 1226, Metro Manila, Philippines 5FM NBJOMJOF 5FM 5FM 5FM 'BY 'BY 'BY 'BY

36 Bangkok Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. Representative Offce (China) Jiangsu Branch (China) Ningde Sales Offce (China) Linyi Central Sub- "EESFTT'M4BUIPSO$JUZ "EESFTT3PPN #VJMEJOH% /P "EESFTT' ,ZPUP.PUFM "SFB" branch 5PXFS 4PVUI4BUIPSO3E 128, Aoti Avenue, Jianye District, +JOHBOH.JOEV 8BO"O83PBE "EESFTT' %POHZJ3PBE Tungmahamek, Sathorn Bangkok /BOKJOH$JUZ +JBOHTV 13$ %POHRJBP%JTUSJDU /JOHEF$JUZ )FEPOH%JTUSJDU -JOZJ 4IBOEPOH 10120, Thailand ;*1 'VKJBO 13$ 13$ 5FM_ 5FM ;*1 ;*1 'BY 'BY 5FM 5FM 'BY 'BY Hanoi Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. Representative Offce (China) Kunshan Sales (China) Guangdong Branch "EESFTT' )BJ#B5SVOH4USFFU (China) Beijing Branch "EESFTT' 2JBOTIV1BOGV )PBO,JFN%JTUSJDU )BOPJ 7JFUOBN Offce "EESFTT' #MPDL -JQQP1MB[B #VJMEJOH /P %POHGFOH9J 5FM 3POHIVB.JEEMF3PBE #FJKJOH "EESFTT' /P )FJMPOHKJBOH 3PBE (VBOH[IPV$JUZ (VBOHEPOH 'BY &DPOPNJDBOE5FDIOPMPHJDBM /PSUI3PBE ,VOTIBO$JUZ +JBOH[V 1SPWJODF 13$ %FWFMPQNFOU;POF #FJKJOH 13$ 13$ ;*1 ;*1 ;*1 5FM 5FM HCMC 5FM 'BY 'BY Representative Offce 'BY "EESFTT' 1IBN)POH5IBJ Cathay Insurance Co., Ltd. 4USFFU %JTUSJDU )$.$ 7JFUOBN Cathay Insurance Co., Ltd. 5FM_ Cathay Insurance Co., Ltd. (China) Dongguan Sales (China) Sichuan Branch 'BY (China) Suzhou Sales Offce Offce "EESFTT' #VJMEJOH $FOUSBM "EESFTT3PPN# /P )VBOHGV "EESFTT3N #VJMEJOH# 'JSTU 1MB[B /P 4IVODIFOH%B+JF 3PBE 4V[IPV*OEVTUSJBM1BSL *OUFSOBUJPOBM /BO$IFOH%JTUSJDU +JOHKJBOH%JTUSJDU $IFOHEV Yangon 4V[IPV +JBOHTV 13$ %POHHVBO (VBOHEPOH 13$ 4JDIVBO 13$ Representative Offce ;*1 ;*1 ;*1 5FM "EESFTT 4USBOE4RVBSF -FWFM 5FM 5FM 'BY /P 4USBOE3PBE 1BCFEBO 'BY 'BY 5PXOTIJQ :BOHPO 3FQVCMJDPGUIF 6OJPOPG.ZBONBS Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. 5FM Cathay Insurance Co., Ltd. 'BY (China) Heyuan Sales Offce (China) Hubei Branch (China) Fujian Branch "EESFTT' )BJ5VP#VJMEJOH "EESFTT' $IBOHIBOH#VJMEJOH "EESFTT' ;IBORJ#VJMEJOH Intersection of Hai Yuan Boulevard /P :BOKJBO#PVMFWBSE +JBOHIBO Cathay United Bank %POH1V3E (VMP%JTUSJDU 'V[IPV BOE:POHIF3PBE :VBO$IFOH %JTUSJDU 8VIBO )VCFJ 13$ 'VKJBO 13$ District, Heyuan City, Guangdong, ;*1 (Cambodia) Corporation 5FM ;*1 13$ 'BY Limited 5FM ;*1 "EESFTT/P4BNEFDI1BO 'BY 5FM 4USFFU 4U ,IBO%BVO 'BY Cathay Insurance Co., Ltd. Penh, Phnom Penh, Kingdom of Cambodia Cathay Insurance Co., Ltd. (China) Wuchang 5FM Cathay Insurance Co., Ltd. Friendship Boulevard Sales 'BY (China) Xiamen Central (China) Zhejiang Branch Sub-branch Offce "EESFTT8FTU' :POH5POH4JO "EESFTT/P5F 'SJFOETIJQ "EESFTT' 9JBTIBOH#VJMEJOH 4J(VBOH$IBOH /P )VBO Boulevard, Wuchang District, /P)VCJO4PVUI3E 9JBNFO $IFOH/PSUI3PBE 9JB$IFOH ● 8VIBO )VCFJ 13$ Cathay Century 'VKJBO 13$ %JTUSJDU )BOH;IPV$JUZ ;IFKJBOH ;*1 ;*1 1SPWJODF 13$ 5FM Insurance 5FM ;*1 'BY 'BY 5FM 'BY Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. (China) Shanghai Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. (Ho Chi Minh City Headquarters (China) Quanzhou Sales (China) Shandong Branch Headquarters, Vietnam) "EESFTT' #VJMEJOH" 0SJFOUBM Offce "EESFTT' 4XBO#VJMEJOH "EESFTT' 1IBN)POH 'JOBODJBM4RVBSF $FOUVSZ Provincial Supply and Marketing Thai Str., District 1, Ho Chi Minh "EESFTT"SFB) ' 2VBO[IPV $JUZ 7JFUOBN #PVMFWBSE 1VEPOH/FX"SFB $PPQFSBUJWF /P -J4IBO3PBE &WFOJOH1BQFS0VUCVJMEJOH 5FM 4IBOHIBJ 13$ -J9JB%JTUSJDU +JOBO 4IBOEPOH 2VBO[IPV 'VKJBO 13$ 'BY ;*1 ;*1 13$ 5FM 5FM ;*1 'BY 'BY 5FM Cathay Insurance Co., Ltd. 'BY (Vietnam) Hanoi Branch Cathay Insurance Co., Ltd. "EESFTT' #VJ5IJ9VBO4US Cathay Insurance Co., Ltd. Cathay Insurance Co., Ltd. (China) Xuhui Yishan Road )BJ#B5SVOH%JTU )B/PJ$JUZ (China) Zhangzhou Sales (China) Qingdao Central 7JFUOBN Sales Offce 5FM "EESFTT' #MPDL" 4DJFODF Offce Sub-branch 'BY 5FDIOPMPHZ.BOTJPO /P "EESFTT' 9JODIFOH#VJMEJOH "EESFTT3N (BMBYZ#VJMEJOH :JTIBO3PBE 9VIVJ%JTUSJDU 4IVJYJBO%B+JF 9JBOHDIFOH 4IBOEPOH3PBE 4IJOBOH%JTUSJDU

4IBOHIBJ 13$ %JTUSJDU ;IBOH[IPV 'VKJBO 13$ 2JOHEBP 4IBOEPOH 13$ Report 2014 Annual ;*1 ;*1 ;*1 5FM 5FM 5FM 'BY 'BY 'BY

37 Te Year in Review 2014

January t$BUIBZ(SPVQIPTUFEUIF$BUIBZhT%SFBN $BNQo+FSFNZ-JO#BTLFUCBMM5SBJOJOH$BNQ tCathay Century Insurance held its 2014 January sales t5IF$BUIBZ/#":PVUI.BEOFTTPO FYFDVUJWFNFFUJOH basketball event held its national fnal. t$BUIBZ-JGFIFMEJUTBOOVBMTBMFTNFFUJOH t$BUIBZ6OJUFE#BOLPQFOFEJUT4IBOHIBJ1JMPU'SFF t$BUIBZ6OJUFE#BOLFTUBCMJTIFEB%JHJUBM#BOLJOH Trade Zone Sub-Branch, the first Taiwanese owned Division" to be responsible for planning and operating bank in the Shanghai Pilot Free Trade Zone. new digital banking products, e-commerce, planning and implementing ATMs and payment platforms, August EJHJUBMUSFOEBOBMZTJT BOEQMBOOJOHBOEFYFDVUJOH digital banking marketing strategies. tThe Qingdao Sales Office of Cathay Century *OTVSBODF $IJOB IBTCFFOBQQSPWFEGPSBOVQHSBEF March to the Qingdao Central Sub-branch. tCathay Securities assisted Crédit Agricole Corporate t$BUIBZ6OJUFE#BOLPQFOFEJUT4IBOHIBJ.JOIBOH *OWFTUNFOU#BOLPG'SBODFJOJTTVJOHUXP64% Sub-Branch. denominated international bonds. tThe Financial Supervisory Commission approved tCathay Securities hosted its 10th anniversary

Cathay Financial Holdings Financial Cathay $BUIBZ6OJUFE#BOLhTBQQMJDBUJPOUPPQFOB celebratory tea party. subsidiary bank in China. t$BUIBZ4FDVSJUJFTMBVODIFE046TFSWJDFT tCathay Securities received the Financial Supervisory $PNNJTTJPOhTBQQSPWBMUPCFPOFPGUIFGJSTU September TFDVSJUJFTEFBMFSTUPPGGFS046TFSWJDFT t$BUIBZ6OJUFE#BOLPQFOFEJUT3BOHPPO April 3FQSFTFOUBUJWF0GåDFJO#VSNB tCathay Securities introduced the online service, t$BUIBZ6OJUFE#BOL*OUFSOFU#BOLJOH JODMVEJOH &BTZ1BTTXPSE UPFOBCMFDVTUPNFSTUPDIBOHF .Z#BOLBOE.Z## MBVODIFEJUTNFSHJOHBDDPVOUT their passwords easily and securely. in Greater China and Shanghai" service. tCathay Century Insurance launched the "Zero tCathay Securities launched the first and only Stock Accidents Academy" website and teamed up with -PUUFSZ"QQ /BUJPOBM$IJBP5VOH6OJWFSTJUZBOE$FOUSBM1PMJDF 6OJWFSTJUZJOUIFEFWFMPQNFOUPGåUOFTTBOEEBOHFS October BXBSFOFTTUFTUT5IFUFTUTXJMMEJBHOPTFBESJWFShT t$BUIBZ6OJUFE#BOLJTTVFEB64%QFSQFUVBM habits and serve to correct bad driving habits. TVCPSEJOBUFGJOBODJBMEFCFOUVSFBOEB64% tCathay Insurance held its 2014 Osaka Summit. subordinate financial debenture in Taiwan international bond market. Both are the first-ever May issue of this kind of bond in this market. tCathay Securities introduced 24-hour online services, tCathay hosted the 2014 3-on-3 high school including "changing personal information" and basketball fnal. "online signature". t5IF$BUIBZ$VTUPNFSTh$IJMESFO4DIPMBSTIJQ Program" held the its lot drawing ceremony. tCathay Securities promoted e-services and launched a cloud subscription center. June tCathay Financial Holdings held its 2014 general TIBSFIPMEFSThNFFUJOH July tCathay Securities Investment Trust launched the Cathay Global Multiple Income Balanced Fund & /;%1SJODJQBM1SPUFDUFE'VOE tCathay Securities opened Cathay Investment $POTVMUJOH 4IBOHIBJ $P -UEJO4IBOHIBJ t$BUIBZ6OJUFE#BOLBSSBOHFEB64NJMMJPO $BUIBZ'VUVSFTXPOUIF8FBMUI.BOBHFNFOU"XBSE JOEJWJEVBMDBUFHPSZ BOE#FTU*OOPWBUJPO"XBSE HSPVQDBUFHPSZ BUUIFSE5BJXBO#FTU'JOBODJBM syndicated loan for Petrovietnam. Planner Award.

38 t$BUIBZ6OJUFE#BOLBEPQUFEUIFEFMUBQMVTNFUIPE t:J.JO)VSFDFJWFEUIF$IJOB*OTVSBODF3FHVMBUPSZ JOUIFDBMDVMBUJPOPGDBQJUBMSFRVJSFNFOUTGPSNBSLFU $PNNJTTJPOhTBQQSPWBMUPTFSWFBTUIFOFXQSFTJEFOU SJTLPGGPSFJHOFYDIBOHFPQUJPOTVOEFSSFHVMBUPSZ PG$BUIBZ*OTVSBODF$P -UE $IJOB approval. t$BUIBZ6OJUFE#BOLPQFOFEUIF7JFOUJBOF#SBODI t$BUIBZ6OJUFE#BOLPQFOFEJUT2JOHEBP#SBODI BOECFDBNFUIFåSTU5BJXBOFTFPXOFECBOLJO-BPT t$BUIBZ'JOBODJBM)PMEJOHTTQPOTPSFEUIF/#" tCathay Financial Holdings hosted the Wei-Yin Chen -FHFOET(BNF Baseball Camp. t$BUIBZ4FDVSJUJFTTJHOFEB.06XJUI.BZCBOL,JN November &OH4FDVSJUJFTPG.BMBZTJB tCathay Century Insurance launched the first travel tCathay Securities Investment Trust launched the UBMJTNBOBQQUPIFMQDVTUPNFSTFOKPZTBGFUSBWFM Cathay Asian Growth Fund. tCathay Securities launched the Cathay Genie App for Android. t$BUIBZ-JGFEPOBUFEUPUIF/BUJPOBM5BJXBO Credit Ratings 6OJWFSTJUZ5FBDIFST'VOEUPTVQQPSUUIF%FQBSUNFOU PG'JOBODFPG/56UPDSFBUFBGVOEGPSSFXBSEJOH Company Moody's S & P Taiwan FYDFMMFOUUFBDIFSTBOESFDSVJUJOHOFXUFBDIFST Cathay Financial Holdings Baa3 BBB+ TwAA t$BUIBZ4FDVSJUJFTIFMEUIF&NQMPZFFTPGUIF $BUIBZ-JGF Baa2 A- TwAA+ Year" award ceremony. $BUIBZ6OJUFE#BOL A2 A- TwAA+ December Cathay Century Insurance A3 A- TwAA+ t-JOZJ$FOUSBM4VCCSBODIPG$BUIBZ*OTVSBODF $IJOB Cathay Securities -- -- TwA+ received approval to commence business. ※Credit rating information is as of January 2015.

$BUIBZ-JGFIFMEUIFMBVODIQSFTTDPOGFSFODFGPS,OPX:PVS)FBMUI $BUIBZ6OJUFE#BOLPQFOFE2JOHEBP#SBODI 2014 Annual Report 2014 Annual

Cathay Securities held the press conference for the launch of "Cathay Genie" $BUIBZ$FOUVSZ*OTVSBODFMBVODIFEUIFJOEVTUSZhTåSTUUSBWFMUBMJTNBOBQQUP App. IFMQQPMJDZIPMEFSTFOKPZUSBWFMXJUIPVUXPSSZJOHBCPVUUSBWFMJOTVSBODF

39 2014 Honors and Accolades

February ▇ $BUIBZ-JGF*OTVSBODFSBOLFE/PJOUIF5PQJO the fnancial sector. t $BUIBZ6OJUFE#BOLXBTOBNFE"TJBhT-FBEFSJO4NBSU#BOLJOH JOCZUIF*%$'JOBODJBM*OTJHIUT$BUIBZ6OJUFE#BOLXBT ▇ $BUIBZ-JGF*OTVSBODFSBOLFE/PJOUIFMJGFJOTVSBODF the only fnancially innovative bank in Taiwan to receive the IDC category in the fnancial sector by industry 'JOBODJBM*OTJHIUT*OOPWBUJPO"XBSET '**" t Cathay Securities won frst place in Contributions and second t $BUIBZ6OJUFE#BOLXBTOBNFE#FTU$SPTT#PSEFS5SBEF QMBDFJO8FJHIUTBUUIF&5'5SBEJOH$PNQFUJUJPOGPS #BOL5BJXBOBOE-FBEJOH$PVOUFSQBSUZ#BOL5BJXBO Securities Brokers. CZ(MPCBM#BOLJOH'JOBODF3FWJFX June March t $BUIBZ-JGF*OTVSBODFEFMJWFSFEFYDFMMFODFJOEJHJUBMTFSWJDFT t $BUIBZ6OJUFE#BOLXPOBO&YDFMMFOU*OUFSOBUJPOBM#SBODI BOEXPOUIF/PQMBDFGPSUIFGPVSUIDPOTFDVUJWFUJNFBUUIF 4FSWJDFT"XBSEGSPNUIF&YFDVUJWF:VBO %JHJUBM4FSWJDF#FODINBSLJOH&OUFSQSJTFCZ%JHJUBM5JNFT $BUIBZ6OJUFE#BOLXPOFYDFMMFODFJOUIFCBOLJOHDBUFHPSZ t In the 2014 Green Brand Survey by Digital Times, Cathay 'JOBODJBM)PMEJOHTXPOBOFYDFMMFODFBXBSEJOGJOBODJBM t $BUIBZ-JGF*OTVSBODFXPOUIF3FBEFShT%JHFTU5SVTUFE#SBOE services, which was its third consecutive win at the Green Gold Award in 2014. Brand Awards. t $BUIBZ6OJUFE#BOLXBTOBNFE5IF#FTU5SBEF#BOLJO5BJXBO t "UUIF*OTVSBODF%SBHPOBOE1IPFOJY"XBSET $BUIBZ-JGF 2014 by Trade Finance Magazine. *OTVSBODFXPOFYDFMMFODFJOUIFMJGFJOTVSBODFDPNQBOZåFME t $BUIBZ6OJUFE#BOLXBTOBNFE5IF5BJXBO3FUBJM'JOBODJBM Cathay Financial Holdings Financial Cathay work" category, Cathay Financial Holdings the outstanding 4FSWJDFT"XBSET1SPHSBNNF5IF#FTU&NQMPZFF&OHBHFNFOU award in the "financial holding company" category, and 2014" by The Asian Banker. Cathay Century Insurance the outstanding award in the "non- life insurance company" category. Cathay Financial Holdings July was voted the most desired financial holding employer by t Cathay Financial Holdings was given the highest rating of HSBEVBUFTNBKPSJOHJOåOBODFPSJOTVSBODF " JOUIFUI*OGPSNBUJPO%JTDMPTVSF&WBMVBUJPO t Cathay Century Insurance received the Celent Model Insurer t $BUIBZ6OJUFE#BOLhTXFBMUINBOBHFNFOUPQFSBUJPOXBT Asia Award - Service in 2014, organized by Celent, a global named "most recommended by customers" in the "8th research and advisory frm focused on fnancial services. 8FBMUI.BOBHFNFOU#BOL3BOLJOHDPOEVDUFECZ#VTJOFTT April Today Weekly. t *OUIF"TJB.POFZDBTINBOBHFNFOUQPMMT $BUIBZ6OJUFE t 30 Magazine announced the results of the "Young #BOLXBTSBOLFE/PJOUISFFTNBMMCVTJOFTTDBUFHPSJFT (FOFSBUJPO#SBOE4VSWFZ$BUIBZ-JGF*OTVSBODFXPO and in three medium business categories of the 2014 Best both the "Most Preferred Brand in Possession" and the Cash Management Bank in Taiwan. . "Most Desired Brand" in the insurance category for the ffth consecutive year. t Institutional Investor Magazine, released the results of the "MM"TJB&YFDVUJWF5FBN$BUIBZ'JOBODJBM)PMEJOHT t *OUIF1PXFS#SBOE4VSWFZCZ.BOBHFS5PEBZ $BUIBZ-JGF was named one of the Most Honored Companies and was Insurance won frst place in the life insurance category, and the only fnancial institution in Taiwan to receive the award. $BUIBZ6OJUFE#BOLXPOFYDFMMFODFJOUIFCBOLJOHDBUFHPSZ t $BUIBZ6OJUFE#BOLQBTTFE*40&OWJSPONFOUBM August Management System standards. t Cathay Financial Holdings received the 2014 Corporate t $IJ$IBP-JO )FBEPGUIF5SVTU%FQBSUNFOUBU$BUIBZ Citizenship Award from Commonwealth Magazine. 6OJUFE#BOL XBTOBNFEUIF"TJBO#BOLFS1SPNJTJOH:PVOH t 5IF3JTL.BOBHFNFOU *OTVSBODFBOE'JOBODF.BHB[JOF Banker Awards 2014 by the Asian Banker. SFMFBTFEUIFSFTVMUTPGUIF*OTVSBODF'BJUI)PQF-PWF"XBSE t $BUIBZ8PNFOhT#BTLFUCBMM5FBNXPOUIF84#-DIBNQJPO Cathay Century Insurance received four awards, including st for the 21 consecutive time. "Best Professional Insurance Company", "Best Integrated #SPBEDBTUJOH"XBSE #FTU$43"XBSE BOE#FTU#SBODI May 0GGJDF"XBSE4BMFT%FQBSUNFOU**BTXFMMBTFYDFMMFODF t Cathay Century Insurance won Silver Stevie Awards for JO#FTU$POUSJCVUJPOUP*OTVSBODF&EVDBUJPOBOE#FTU Services Company of the Year and Fastest Growing Product Creativity". Company of the Year at the Asia-Pacifc Stevie Awards 2014. t $BUIBZ6OJUFE#BOLXPOB'JOBODJBM*OTJHIUT*OOPWBUJPO '**" t $BUIBZ'JOBODJBM)PMEJOHTDPOUJOVFEUPSBOL/PBNPOH Award from IDC Financial Insights in 2014. The winning fnancial institutions in Taiwan in the Top 1000 Companies in innovation was made an IDC success story and published on Greater China by Business Today Weekly in 2014. the IDC website. t Commonwealth Magazine released the results of Greater t $BUIBZ6OJUFE#BOLXBTOBNFE5BJXBOhT#FTU4USVDUVSFE $IJOBhT5PQ$PNQBOJFTJO XIJDISBOLFE 1SPEVDUT)PVTFBOE#FTU1SJWBUF#BOL3JTJOH4UBSJO5IF companies by revenue in 2013 fnancial statements. Cathay Asset Triple A Investment Awards. 'JOBODJBM)PMEJOHTSBOLFE/PBNPOHåOBODJBMJOTUJUVUJPOT t $BUIBZ6OJUFE#BOLXPOUIF.PTU*OOPWBUJWF"5.1MBUGPSN in Taiwan. 5BJXBOGSPNUIF(MPCBM#BOLJOH'JOBODF3FWJFX t $PNNPOXFBMUI.BHB[JOFhT5PQ $PNQBOJFTJO

▇ $BUIBZ'JOBODJBM)PMEJOHTSBOLFE/PJOPWFSBMM September QFSGPSNBODFJOUIFåOBODJBMTFDUPS CBTFEPOBVEJUFE t $BUIBZ6OJUFE#BOLXBTOBNFE5IF4USPOHFTU#BOLJO DPOTPMJEBUFEåOBODJBMTUBUFNFOUT Taiwan 2014 by The Asian Banker.

40 Cathay was honored at the Insurance Talent Awards. $BUIBZSFDFJWFEUIF5BJXBO$43"XBSE

t 'PSTJYZFBSTJOBSPX $BUIBZ-JGF*OTVSance received three t $BUIBZ6OJUFE#BOLXPOGPVSBXBSETBUUIFUI0VUTUBOEJOH honors at "The Sports Contribution Award" from the Sports 'JOBODJBM#VTJOFTT&MJUF"XBSET JODMVEJOH#FTU3JTL "ENJOJTUSBUJPOPGUIF.JOJTUSZPG&EVDBUJPO JODMVEJOH Management Award", "Best International Development gold medals in the sponsorship and promotional efforts "XBSE FYDFMMFOUQFSGPSNBODF #FTU$43"XBSE FYDFMMFOU categories as well as the second consecutive long term QFSGPSNBODF BOE#FTU)VNBO3FTPVSDFT%FWFMPQNFOU sponsorship award. "XBSE FYDFMMFOUQFSGPSNBODF t Cathay Financial Holdings and Cathay Securities achieved t $BUIBZ6OJUFE#BOLXBTSBOLFE/PJOUIFCBOLJOH UIF*40(SFFOIPVTF(BTFT&NJTTJPOT7FSJGJDBUJPO category in the 2014 Frontline Service Quality Survey by Opinion Statement from British Standards Institution (MPCBM7JFXT.POUIMZ #4* $BUIBZ4FDVSJUJFTXBTUIFåSTUTFDVSJUJFTEFBMFSUPCF t $BUIBZ6OJUFE#BOLXBTOBNFECZ5IF#BOLFSBT#BOLPG certifed under this category. the Year 2014 in Taiwan". t Cathay Century Insurance received the 16th Golden Peak t $BUIBZ6OJUFE#BOLSFDFJWFEUIF.JOJTUSZPG-BCPS5BJXBO "XBSE5PQ5FO0VUTUBOEJOH&OUFSQSJTFTPGUIF:FBS 5SBJO2VBMJ4ZTUFN 5524 (PME"XBSE and Top Ten Outstanding commodities organized by the t $BUIBZ6OJUFE#BOLXPOUIF#FTU8FBMUI.BOBHFNFOU 0VUTUBOEJOH&OUFSQSJTF.BOBHFS"TTPDJBUJPO30$ 1SPEVDUJO5BJXBOCZ.*-45& October December t $BUIBZ-JGF*OTVSBODFXBTIPOPSFEBT/P 1 in the insurance t The JCIC Golden Security & Golden Quality Awards 2014 category of 2014 "Most Admired Company in Taiwan" by IPOPSFENFNCFSTGPSUIFJSDPOUSJCVUJPOTUPRVBMJUZPGDSFEJU the Commonwealth Magazine. data transmission and control of credit data security. Cathay t Cathay Financial Holdings was the frst fnancial institution to 6OJUFE#BOLXPOUIF(PMEFO2VBMJUZ"XBSE$SFEJU%BUB CFIPOPSFECZUIF&OWJSPONFOUBM1SPUFDUJPO"ENJOJTUSBUJPO BOE$BUIBZ-JGF*OTVSBODFUIF(PMEFO4FDVSJUZ"XBSE JOUIF30$&OUFSQSJTFT&OWJSPONFOUBM1SPUFDUJPO"XBSE t $BUIBZ-JGF*OTVSBODFSFDFJWFEUIF"TJBO*OWFTUPS*OTUJUVUJPOBM &YDFMMFODF"XBSEGSPN"TJBO*OWFTUPS BOEXBTUIFPOMZ t *OUIF/FYU.FEJB.BHB[JOFhTUI5PQ4FSWJDF"XBSE winner from Taiwan. $BUIBZ-JGF*OTVSBODFBOE$BUIBZ6OJUFE#BOLXFSFOBNFE /PJOUIFJSSFTQFDUJWFDBUFHPSJFT t At the award ceremony for the 2015 Consumer Brand Survey by the Management Magazine, Cathay Financial Holdings, t $BUIBZ6OJUFE#BOLXBTSFDPHOJ[FECZ5IF"TTFUBTUIF $BUIBZ-JGF*OTVSBODF BOE$BUIBZ$FOUVSZ*OTVSBODF winner of the 2014 Triple A Greater China Awards for Best in received the top prize in their respective categories. Cathay Financial Services-Wealth Advisory. 6OJUFE#BOLUPPLUIJSEQMBDFJOUIFCBOLJOHDBUFHPSZ t $BUIBZ$FOUVSZ*OTVSBODFXBTOBNFEUIF#FTU/PO t 5IF3JTL.BOBHFNFOU *OTVSBODFBOE'JOBODF.BHB[JOF life Insurance Company in Taiwan by the World Finance BOOPVODFESFTVMUTPGUIF*OTVSBODF2VBMJUZ"XBSET Magazine for the second consecutive year. ▇ $BUIBZ-JGF*OTVSBODFXPOGPVSFYDFMMFODFBXBSETJOUIF t Cathay Century Insurance was named Silver Winner in the DBUFHPSJFTPG#FTU3FDPHOJ[FE #FTU4BMFTQFSTPO Company of the Year category and Bronze Winner in the #FTU$MBJN4FSWJDF BOE#FTU3FDPNNFOEFE

Fastest-Growing Company of the Year category at the Stevie ▇ $BUIBZ$FOUVSZ*OTVSBODFXPOBOFYDFMMFODFBXBSEJO Awards. the category of "Best Image" and three outstanding award in the categories of "Best After-Sales Service", November #FTU4BMFTQFSTPOBOE#FTU3FDPNNFOEFE t Cathay Financial Holdings was named one of the Ten Most t The Wealth Magazine published the winner list for the 2014 Sustainable Company Awards by the Taiwan Institute for $POTVNFS'JOBODJBM4FSWJDF#SBOE"XBSETBOE')$$43"XBSET 4VTUBJOBCMF&OFSHZ$BUIBZ'JOBODJBM)PMEJOHTXBTUIFPOMZ ▇ $BUIBZ'JOBODJBM)PMEJOHTSFDFJWFEUIF#FTU')$$43 financial institution to receive the award in the year. Cathay - Premium Award. 'JOBODJBM)PMEJOHTSFOBNFEJUT$433FQPSUUP$PSQPSBUF 4VTUBJOBCJMJUZ3FQPSU GPDVTJOHPODPSQPSBUFHPWFSOBODF ▇ $BUIBZ6OJUFE#BOLSFDFJWFEUIF#FTU8FBMUI environmental and social risks and opportunities. Cathay Management Bank - Gold Award and the Best Banking Financial Holdings also received a Gold Medal under the Product - Premium Award. 5BJXBO5PQ$PSQPSBUF4VTUBJOBCJMJUZ3FQPSU"XBSET-BSHF ▇ $BUIBZ-JGF*OTVSBODFSFDFJWFEUIF#FTU-JGF*OTVSBODF &OUFSQSJTFT 'JOBODJBM*OEVTUSZ$BUIBZ$FOUVSZ*OTVSBODF (PME"XBSE UIF#FTU-JGF*OTVSBODF1SPEVDU(PME offered holistic insurance education using its core competency "XBSE UIF#FTU-JGF*OTVSBODF4FSWJDFT1SFNJVN"XBSE in loss prevention, and received a Social Inclusion Award. BOEUIF#FTU-JGF*OTVSBODF#SBOE*NBHF(PME"XBSE t $BUIBZ-JGF*OTVSBODFXBT/PVOEFSUIFMJGFJOTVSBODF t Cathay Century Insurance won its first Quality Company DBUFHPSZ TFSWJDF JOUIFUI#FTU#SBOE"XBSETPG #SBWP"XBSECZ3$."JOVOEFSUIFDBUFHPSJFTPG Business Today Weekly. $VTUPNFS4BUJTGBDUJPO(PME"XBSEBOE$43"XBSE t $BUIBZ'JOBODJBM)PMEJOHTSFDFJWFEUIFGJSTU')$$43"XBSE t $BUIBZ-JGF*OTVSBODFSFDFJWFEB'SJFOEMZ8PSLQMBDF"XBSE &YDFMMFODFBUUIF$POTVNFS'JOBODJBM4FSWJDF#SBOE"XBSECZUIF and Cathay Financial Holdings a Best Improvement Award 8FBMUI.BHB[JOF$BUIBZ-JGF*OTVSBODFSFDFJWFEGPVSBXBSET BUUIF#FTU%JTBCJMJUZGSJFOEMZ&NQMPZFS"XBSECZUIF5BJQFJ JODMVEJOH#FTU-JGF*OTVSBODF$PNQBOZ #FTU-JGF*OTVSBODF $JUZ'PSFJHOBOE%JTBCMFE-BCPS0GåDF 1SPEVDU #FTU-JGF*OTVSBODF#SBOE*NBHF(PME"XBSE BOE t Cathay Securities received the Financial Holding Company - #FTU-JGF*OTVSBODF4FSWJDFT1SFNJVN"XBSE$BUIBZ6OJUFE Report 2014 Annual #FTU#SBOE*NBHF"XBSEBUUIF5BJXBO&YDFMMFOU'JOBODJBM Bank received the Best Wealth Management Bank - Gold Award 4FDVSJUJFT4FSWJDFT3BOLJOHCZ&YDFMMFODFNagazine. and the Best Banking Product - Premium Award.

41 42 Cathay Financial Holdings 2014 2014 /PUFUP$POTPMJEBUFE'JOBODJBM4UBUFNFOUT Statements ofCashFlows 4UBUFNFOUTPG$IBOHFTJO&RVJUZ Consolidated StatementsofComprehensive Income Consolidated BalanceSheets *OEFQFOEFOU"VEJUPShT3FQPSU Financial Review ...... 48-68 47 46 45 44 43 English Translation of a Report Originally Issued in Chinese Audit Report of Independent Auditors

Te Board of Directors and Shareholders Cathay Financial Holding Co., Ltd.

We have audited the accompanying consolidated balance sheets of Cathay Financial Holding Co., Ltd. (the"Company") and its subsidiaries as of 31 December 2014, 31 December 2013 and 1 January 2013, and the related consolidated statements of comprehensive income, changes in equity and cash fows for the years ended 31 December 2014 and 2013. Tese consolidated fnancial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated fnancial statements based on our audits.

We conducted our audits in accordance with the"Regulations Governing Auditing and Attestation of Financial Statement by Certifed Public Accountants" and auditing standards generally accepted in the Republic of China. Tose rules and standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated fnancial statement. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signifcant estimates made by management, as well as evaluating the overall presentation of the consolidated fnancial statement. We believe that our audits provide a reasonable basis for our opinion.

Based on our audits, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated fnancial position of the Company and its subsidiaries as of 31 December 2014, 31 December 2013 and 1 January 2013, and the consolidated results of their operations and their cash fows for the years ended 31 December 2014 and 2013, in conformity with the requirements of the "Regulations Governing the Preparation of Financial Reports by Financial Holding Companies", "Regulation Governing the Preparation of Financial Reports by Securities Issuers" and "International Financial Reporting Standards", "International Accounting Standards", "Interpretations developed by the International Financial Reporting Interpretations Committee" as endorsed by Financial Supervisory Commission of the Republic of China.

As described in Note 4 to the consolidated fnancial statements, efective 1 January 2014, the Company and its subsidiaries announced to change the accounting policy regarding subsequent measurement of investment properties from cost model to fair value model and restated retrospectively the consolidated fnancial statements for the year ended 31 December 2013, and the related consolidated balance sheets as of 1 January 2013 and 31 December 2013.

Ernst & Young Taipei, Taiwan Te Republic of China 19 March 2015

Notice to Readers Te accompanying consolidated fnancial statements are intended only to present the consolidated fnancial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in Report 2014 Annual the Republic of China and not those of any other jurisdiction. Te standards, procedures and practices to audit such consolidated fnancial statements are those generally accepted and applied in the Republic of China.

43 English Translation of Financial Statements Originally Issued in Chinese Cathay Financial Holding Co., Ltd. and Subsidiaries Consolidated Balance Sheets As at 31 December 2014, 31 December 2013 and 1 January 2013 (Expressed in thousands of dollars) 2014.12.31 2013.12.31 2013.1.1 Items NT $ US $ NT $ US $ NT $ US $ Assets Cash and cash equivalents $435,006,606 $13,766,032 $331,666,078 $11,118,541 $313,663,386 $10,797,363 Due from the Central Bank and call loans to banks 151,289,044 4,787,628 151,945,066 5,093,700 109,003,762 3,752,281 Financial assets at fair value through proft or loss 223,007,168 7,057,189 244,023,246 8,180,464 146,746,672 5,051,520 Available-for-sale fnancial assets -net 1,405,300,159 44,471,524 1,357,106,776 45,494,696 1,302,743,262 44,844,863 Derivative fnancial assets for hedging 665,390 21,057 1,300,914 43,611 2,362,366 81,321 Securities purchased under agreements to resell 56,515,170 1,788,455 12,960,817 434,489 15,749,244 542,143 Receivables -net 134,368,376 4,252,164 169,590,966 5,685,249 109,911,278 3,783,521 Current income tax assets 7,374,177 233,360 5,585,301 187,238 3,597,490 123,838 Assets held for sale -net - - 81,950 2,747 - - Loans -net 1,812,773,579 57,366,252 1,667,391,682 55,896,469 1,521,712,123 52,382,517 Reinsurance assets -net 6,377,012 201,804 5,740,684 192,447 14,641,999 504,027 Held-to-maturity fnancial assets -net 81,658,512 2,584,130 54,970,153 1,842,781 24,380,985 839,277 Investments accounted for using the equity method 4,546,723 143,884 3,153,320 105,710 2,235,874 76,966 -net Other fnancial assets -net 2,131,815,297 67,462,509 1,724,797,817 57,820,912 1,605,300,209 55,259,904 Investment properties -net 338,336,979 10,706,866 292,314,597 9,799,350 251,035,241 8,641,488 Property and equipment -net 92,877,629 2,939,165 103,394,363 3,466,120 113,460,664 3,905,703 Intangible assets -net 9,283,025 293,767 9,223,432 309,200 9,393,007 323,339 Deferred tax assets -net 16,245,526 514,099 15,062,222 504,935 19,065,855 656,312 Other assets -net 37,561,436 1,188,653 26,963,277 903,898 24,726,997 851,187 Total assets $6,945,001,808 $219,778,538 $6,177,272,661 $207,082,557 $5,589,730,414 $192,417,570

Liabilities & equity Liabilities Due to the Central Bank and call loans from banks $58,816,432 $1,861,279 $56,985,225 $1,910,333 $56,934,246 $1,959,871 Bankers acceptances and funds borrowed 1,585,900 50,187 1,497,500 50,201 1,456,800 50,148 Financial liabilities at fair value through proft or loss 108,286,154 3,426,777 28,754,621 963,950 9,086,346 312,783 Derivative fnancial liabilities for hedging - - 5,148 173 - - Securities sold under agreements to repurchase 62,021,921 1,962,719 60,931,600 2,042,628 22,046,517 758,916 Commercial paper payable -net 26,790,000 847,785 10,050,000 336,909 5,540,000 190,706 Payables 50,417,151 1,595,479 37,548,440 1,258,748 60,740,926 2,090,910 Current income tax liabilities 237,634 7,520 37,003 1,240 104 4 Deposits 1,702,302,143 53,870,321 1,585,031,001 53,135,468 1,458,392,976 50,202,856 Bonds payable 107,613,949 3,405,505 92,417,213 3,098,130 89,831,007 3,092,289 Provisions 3,801,526,910 120,301,484 3,477,440,832 116,575,288 3,175,688,291 109,318,014 Other fnancial liabilities -net 543,279,993 17,192,405 413,414,217 13,859,008 348,229,937 11,987,261 Deferred tax liabilities 27,171,794 859,867 18,936,804 634,824 19,843,268 683,073 Other liabilities 16,630,845 526,293 14,712,855 493,223 18,548,681 638,509 Total liabilities 6,506,680,826 205,907,621 5,797,762,459 194,360,123 5,266,339,099 181,285,340

Equity attributable to owners of parent Capital stock Common stock 125,632,102 3,975,699 119,649,621 4,011,050 108,653,851 3,740,236 Capital surplus 88,782,304 2,809,567 89,063,184 2,985,692 78,508,148 2,702,518 Retained earnings Legal reserve 19,784,401 626,089 16,922,773 567,307 15,222,599 524,014 Special reserve 82,305,614 2,604,608 82,314,780 2,759,463 82,314,780 2,833,555 Undistributed earnings 61,107,449 1,933,780 37,287,956 1,250,015 16,296,275 560,973 Other equity 55,069,268 1,742,698 30,091,548 1,008,768 25,823,918 888,947 Treasury stock - - - - (7,179,872) (247,156) Non-controlling interests 5,639,844 178,476 4,180,340 140,139 3,751,616 129,143 Total equity 438,320,982 13,870,917 379,510,202 12,722,434 323,391,315 11,132,230 Total liabilities and equity $6,945,001,808 $219,778,538 $6,177,272,661 $207,082,557 $5,589,730,414 $192,417,570

(Te exchange rates provided by the Federal Reserve Bank of New York on 31 December 2014, 31 December 2013 and 1 January 2013 were NT$31.60, NT$29.83 and NT$29.05 to US$1.00)

44 English Translation of Financial Statements Originally Issued in Chinese Cathay Financial Holding Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT $ US $ NT $ US $ Interest income $141,353,891 $4,473,224 $128,631,189 $4,312,142 Less: Interest expenses (16,271,075) (514,907) (14,073,643) (471,795) Net interest income 125,082,816 3,958,317 114,557,546 3,840,347 Net income other than interest Net commission and handling fee 369,206 11,684 790,862 26,513 Net premiums from insurance business 202,458,185 6,406,904 213,301,740 7,150,578 Losses on fnancial assets and liabilities at fair value through proft or loss (47,375,592) (1,499,228) (28,805,639) (965,660) Gains from investment properties 26,194,212 828,931 15,537,918 520,882 Realized gains on available-for-sale fnancial assets 43,743,777 1,384,297 34,241,006 1,147,872 Realized gains on held-to-maturity fnancial assets 4,591 145 3,134 105 Gains on foreign exchange 53,400,038 1,689,875 35,548,670 1,191,709 Impairment losses on assets (118,038) (3,735) (174,671) (5,856) Share of proft of associates and joint ventures accounted for using equity 167,505 5,301 157,038 5,264 method Net other non-interest gains 3,448,803 109,139 6,972,108 233,728 Total income 407,375,503 12,891,630 392,129,712 13,145,482 Bad debt expenses and provision for premiums reserve (2,982,412) (94,380) (1,484,068) (49,751) Changes in insurance liabilities and provisions (290,799,984) (9,202,531) (293,569,577) (9,841,421) Operating expenses Employee benefts expenses (35,106,064) (1,110,951) (34,297,866) (1,149,778) Depreciation and amortizations expenses (2,526,728) (79,960) (2,907,416) (97,466) Other general and administration expenses (19,717,595) (623,975) (17,071,429) (572,291) Subtotal (57,350,387) (1,814,886) (54,276,711) (1,819,535) Proft before income tax from continuing operations 56,242,720 1,779,833 42,799,356 1,434,775 Income tax expense (6,458,083) (204,370) (4,778,984) (160,207) Net income 49,784,637 1,575,463 38,020,372 1,274,568

Other comprehensive income Exchange diferences resulting from translating the fnancial statements of a foreign operation 1,602,548 50,714 733,397 24,586 Unrealized gains (losses) gains from available-for-sale fnancial assets 26,656,341 843,555 (6,879,955) (230,639) Losses on cash fow hedges (241,911) (7,655) (714,659) (23,958) Share of other comprehensive income of associates and joint ventures accounted for using the equity method 88,452 2,799 (14,204) (476) Other comprehensive income - others 913,058 28,894 10,805,816 362,247 Income tax relating to the components of other comprehensive income (2,832,840) (89,647) 439,624 14,738 Other comprehensive income, net of tax 26,185,648 828,660 4,370,019 146,498 Total comprehensive income $75,970,285 $2,404,123 $42,390,391 $1,421,066

Net income attributable to: Owners of parent $49,522,447 $1,567,166 $37,816,036 $1,267,718 Non-controlling interests 262,190 8,297 204,336 6,850 Subtotal $49,784,637 $1,575,463 $38,020,372 $1,274,568

Total comprehensive income attributable to: Owners of parent $75,312,384 $2,383,303 $42,083,666 $1,410,783 Non-controlling interests 657,901 20,820 306,725 10,283 Subtotal $75,970,285 $2,404,123 $42,390,391 $1,421,066

Earnings per share (expressed in dollars) : Basic earnings per share: Net income $3.94 $0.12 $3.12 $0.10

(Te exchange rates provided by the Federal Reserve Bank of New York on 31 December 2014 and 2013 were NT$31.60 and NT$29.83 to US$1.00) 2014 Annual Report 2014 Annual

45 ------(432) 6,819 (5,482) 279,060 426,014 US$ (250,277) (567,957) 1,575,463 1,274,568 $10,841,145 $12,009,816 $12,722,434 828,660 828,660 2,404,123 25,367 $13,870,917 146,498 1,421,066 4,089 ------Total equity (13,665) 203,408 NT$ (163,499) (7,465,770) 49,784,637 38,020,372 12,708,000 (17,947,443) $323,391,315 $379,510,202 8,324,358 8,324,358 26,185,648 26,185,648 75,970,285 801,603 $438,320,982 4,370,019 4,370,019 42,390,391 121,999 $379,510,202 ------8,297 6,850 US$ $125,767 $132,289 12,523 20,820 25,367 $178,476 3,433 10,283 4,089 $140,139 ------interests NT$ 204,336 Non-controlling 262,190 $3,751,616 $4,180,340

395,711 395,711 657,901 801,603 $5,639,844 102,389 102,389 306,725 121,999 $4,180,340 ------(432) 6,819 (5,482) 279,060 426,014 US$ (567,957) (250,277) 1,567,166 1,267,718 $10,715,378 $11,877,527 $12,582,295 816,137 816,137 2,383,303 - $13,692,441 143,065 1,410,783 ------Total (13,665) 203,408 (163,499) NT$ (7,465,770) 12,708,000 49,522,447 37,816,036 (17,947,443) $319,639,699 $375,329,862 8,324,358 8,324,358 25,789,937 25,789,937 75,312,384 - $432,681,138 4,267,630 4,267,630 42,083,666 - $375,329,862 ------$- US$ 240,693 $(240,693) $- $------$------$- Treasury stock NT$ $(7,179,872) 7,179,872 7,179,872 $- $- - - - $- - $------US$ $(41) $(30) (15) (15) - $(45) 9 9 - $(32) ------Others NT$ $(953) $(1,230) (484) (484) - $(1,437) 277 277 277 - $(953) ------$- US$ (25,703) $316,701 - - 26,434 26,434 26,434 $317,432 335,492 335,492 - $335,492 ------$- NT$ (812,217) Revaluaiton Surplus $10,007,738 - - 835,299 835,299 835,299 $10,030,820 10,007,738 10,007,738 10,007,738 - $10,007,738 ------US$ $32,742 $12,098 - - (6,388) (6,388) $5,710 (19,925) (19,925) - $12,817 ------hedges NT$ ow ow f cash on Gains $976,682 $382,306 (201,853) (201,853) - $180,453 (594,376) (594,376) - $382,306 Other equity Other ------US$ $869,278 $640,205 - - 760,352 760,352 $1,400,557 (191,085) (191,085) - $678,193 ------assets NT$ Unrealized gains from $25,930,563 $20,230,491 available-for-sale fnancial - - 24,027,155 24,027,155 24,027,155 $44,257,646 (5,700,072) (5,700,072) - $20,230,491 ------US$ $(36,276) $(17,702) $(16,710) 35,754 35,754 35,754 - $19,044 18,574 18,574 ------operation resulting from NT$ $(528,034) erences erences f di Exchange statements of astatements foreign $(1,082,097) translating the f nancial translating Equity attributable to owners of parent of owners to attributable Equity - 1,129,820 1,129,820 1,129,820 $601,786 554,063 554,063 554,063 - $(528,034) - - - - 290 (Expressed in thousands of dollars) of (Expressed in thousands 8,456 (6,459) 25,703 US$ (90,558) (56,995) (189,319) (250,277) (567,957) (250,277) $546,305 1,567,166 1,267,718 1,567,166 1,267,718 $1,933,780 $1,250,015 $1,179,999 Statements of changes in equity changes of Statements ------For the years ended the years 31 December 2013 2014 and For 9,166 267,215 812,217 NT$ (192,641) (5,982,481) (7,465,770) (7,465,770) (2,861,628) (1,700,174) 49,522,447 37,816,036 Undistributed earnings (17,947,443) $16,296,275 $37,287,956 - 49,522,447 - 49,522,447 $61,107,449 37,816,036 - 37,816,036 - $37,287,956 ------(290) US$ Cathay Financial Holding Co., Ltd. and Subsidiaries and Ltd. Co., Holding Financial Cathay $2,759,463 $2,759,463 $2,604,898 - - - - $2,604,608 ------(9,166) Special reserve Retained earnings NT$ $82,314,780 $82,314,780 - - - - $82,305,614 - - - $82,314,780 ------90,558 56,995 US$ $510,312 $535,531 - - - $626,089 - - - $567,307 ------Legal reserve Legal NT$ 2,861,628 1,700,174 $15,222,599 $16,922,773 - - - - - $19,784,401 - - - - $16,922,773 ------977 English Translation of Financial Statements Originally in Chinese Issued Statements Financial of English Translation (432) 6,819 (8,456) 38,367 US$ 307,677 $2,631,852 $2,818,455 - - - - $2,809,567 - - - - $2,985,692 ------29,142 Capital surplus Capital (13,665) 203,408 NT$ (267,215) 9,178,000 $78,508,148 $89,063,184 - - - - - $88,782,304 - - - - $89,063,184 1,144,486 1,144,486 ------US$ 189,319 250,277 118,337 $3,642,436 $3,786,380 - - - - - $3,975,699 - - - - $4,011,050 ------

Capital stock Capital Common stock Common NT$ 5,982,481 7,465,770 3,530,000 $108,653,851 $119,649,621 - - - - $125,632,102 - - - - $119,649,621 Items associates and joint ventures associates ventures joint and the equity using for accounted method rst-time adoption of TIFRS of adoption f rst-time Share Share of changes in net assets of 2014 December ended 31 December 2014 ended 31 December 2014 2012(Note1) reserve Legal 2013(adjusted) December ended 31 December 2013 ended 31 December 2013(adjusted) subsidiary stock paid and book value 2013(Note2) reserve Legal Cash dividends Cash dividends Cash Stock dividend reserve special of Reversal T e capital reserve set aside the for Stock dividend Increase in non-controlling interests Other additional paid-in capital paid-in additional Other Net income for the year ended 31 year the for income comprehensive Other year the for income Comprehensive Others 2014 December 31 on Balance Balance on 1 January 2013(adjusted) January 1 on Balance Appropriations and distribution for Net income for the year ended 31 year the for income comprehensive Other year the for income Comprehensive Increase in cash capital Value di f erence between price Share-based payment oftransaction Others Increase in non-controlling interests 2013(adjusted) December 31 on Balance 2014(adjusted) January 1 on Balance Appropriations and distribution for 46 Income. Comprehensive of Statements year's current been from deducted have $1,494 (US$50) thousands bonuses employees' and $5,400 (US$181) thousands remuneration 31 December 2012, directors' of As Note1: Income. Comprehensive of Statements year's current been from deducted have $2,394 (US$76) thousands bonuses employees' and $3,300 (US$104) thousands remuneration 31 December 2013, directors' of As Note2: - - - 9 (71) 322 438 959 838 (533) 6,998 6,705 7,292 (9,965) (7,543) (5,310) (6,750) (1,676) 15,949 26,879 (43,571) (33,189) (88,841) (15,855) (11,351) (15,621) (68,273) 331,833 496,114 103,921 151,190 (445,671) (390,422) (250,277) 3,656,027 1,887,282 4,232,040 US$ $11,118,541 $15,209,057 434,489 13,321,775 $15,209,057 426,014 702,395 19,948 1,257 (571,039) (117,453) 1,735,978 (2,429,052) - - 9 261 9,615 (2,121) 13,067 28,596 25,000 (15,905) (50,000) 475,769 801,792 208,750 200,000 217,537 2013.1.1~2013.12.31 (297,268) (225,000) (158,394) (201,356) (990,013) (472,953) (338,612) (465,975) 9,898,582 3,099,980 4,510,000 (1,299,728) (7,465,771) (2,650,131) (2,036,594) 56,297,646 14,799,076 NT$ (13,294,354) (11,646,282) 109,059,305 126,241,756 $331,666,078 $453,686,200 12,960,817 397,388,554 $453,686,200 12,708,000 20,952,439 595,059 (17,034,088) 37,496 (3,503,624) 51,784,236 (72,458,618) ------27 716 (616) 7,361 6,804 2,798 2,703 1,261 2,088 1,859 (7,483) 28,481 18,130 35,969 (46,930) (27,743) (43,672) (43,529) 480,909 517,652 406,026 529,747 (463,018) (933,425) (567,957) (299,922) 3,338,197 4,535,526 4,336,889 US$ $13,766,032 1,788,455 $18,892,684 14,357,158 $18,892,684 30,596 530,065 57,798 2,187 (943,680) (139,942) 4,891,343 639,762 ------8 866 88,400 85,420 39,854 22,625 65,981 58,740 (19,470) 232,615 900,000 572,913 215,009 2014.1.1~2014.12.31 (236,460) (876,690) 1,136,624 (1,483,000) (9,477,543) (1,380,025) (1,375,506) 15,196,735 16,357,817 12,830,422 16,740,000 NT$ (14,631,379) (29,496,226) (17,947,445) 105,487,043 143,322,619 137,045,682 $435,006,606 $597,008,819 56,515,170 453,686,200 $597,008,819 966,820 16,750,038 1,826,420 (29,820,274) 69,097 (4,422,173) 154,566,435 20,216,488 s Items under IAS No.7 IAS under cash equivalents under IAS No.7 IAS under equivalents cash Net cash used in investing activities cash usedNet in investing nancing activities f nancing from cash f ows Net ows from operating activities operating from cash f ows Net nition of cash and cash equivalents cash and cash of f ed the de f nition satis resell to agreements sold Bills under Cash and cash equivalents presented in balance sheet presented equivalents cash Cash and and cash of f ed the de f nition banks satis thecall to Central BankDue loans and from Issuance of bank debentures of Issuance Redemption of corporate bonds corporate of Redemption Decrease in clearing and settlement funds settlement and Decrease in clearing paid deposits in guarantee Increase Decrease in guarantee deposits paid deposits Decrease in guarantee Interest received Interest Increase (decrease) in bills and bonds sold under agreements to repurchase to agreements sold under bonds and (decrease) in bills Increase t or loss t or f pro through value fair assets at f nancial of Acquisition Dividends received Dividends of intangible assets intangible of Acquisition Increase in short-term borrowings in short-term Increase Increase (decrease) in other liabilities (decrease) in other Increase Interest paid Interest t or loss t or f pro through value fair assets at f nancial Disposal of of investment properties investment of Acquisition Payment of cash dividends cash of Payment Increase in funds borrowed from Central Bank and banks Central Bank and from borrowed in funds Increase Income taxes paid taxes Income of investment properties investment Disposal of nancial assets available for sale for assets available f nancial of Acquisition Increase in cash capital in cash Increase Increase in other assets in other Increase Increase in commercial paper payable paper in commercial Increase nancial assets available for sale for assets available f nancial Disposal of Dividends received Dividends Due repays principal of bond investments with no active market market active no with investments bond of principal Due repays nancial assets held to maturity to assets held f nancial of principal Due repays Acquisition of investments accounted for using the equity method the equity using for accounted investments of Acquisition Disposal of investments accounted for using the equity method the equity using for accounted investments Disposal of Acquisition of subsidiary of Acquisition Disposal of subsidiaryDisposal of Cash returned by capital deduction from investments accounted for using equity method equity using for accounted investments from deduction capital by Cash returned Disposal of assets held for sale for held assets Disposal of of property and equipment and property of Acquisition Disposal of property and equipment and property Disposal of Increase in operating deposit in operating Increase Decrease in operating deposit Decrease in operating Increase in clearing and settlement funds settlement and in clearing Increase Cash and cash equivalents at the end of periods of the end Cash at cash and equivalents e components of cash cash and equivalent of T e components ects of exchange rate changes on cash cash and equivalents on changes rate ects exchange E f of in cash cash and equivalents Increase ows from investing activities investing from Cash f ows Cash and cash equivalents at the end of periods of the end at equivalents cash Cash and nancing activities f nancing from Cash f ows Cash and cash equivalents at the beginning of periods the beginning of Cash at cash and equivalents Cash generated from operations from Cash generated - 172 181 494 (313) 4,846 6,927 6,818 (1,993) (5,946) (5,264) (4,397) (1,071) 12,479 49,751 84,987 11,626 627,521 300,348 471,795 208,224 (853,187) (163,942) (881,419) (490,930) (309,582) 1,313,522 4,222,322 1,112,444 9,905,161 (1,882,003) (4,917,715) (1,032,593) (2,762,832) (4,312,142) (1,247,117) (2,176,782) (1,032,264) $1,434,775 US$ (3,863,827) (117,405) 4,303,274 (9,579,103) (13,882,377) (11,367) 5,715,276 6,819 Statements of cash f ows of Statements (Expressed in thousands of dollars) of (Expressed in thousands - 5,148 5,384 (9,343) 14,746 (59,443) (31,949) 372,264 346,794 144,560 206,620 203,372 2013.1.1~2013.12.31 (177,381) (157,038) (131,174) 1,484,068 8,959,387 2,535,152 6,211,326 (4,890,404) (9,234,839) 18,718,967 39,182,351 33,184,214 14,073,643 For the years ended the years 31 December 2013 2014 and For NT$ (25,450,568) (56,140,162) (26,292,724) (30,802,249) (82,415,269) (37,201,490) (64,933,396) (14,644,454) (30,792,422) 125,951,868 $42,799,356 295,470,955 (146,695,438) (128,631,189) (115,257,974) (3,502,203) 128,366,672 (285,744,621) (414,111,293) (339,066) 170,486,647 203,408 - - - - 901 (163) (940) 3,367 2,834 1,561 (4,454) (5,301) Cathay Financial Holding Co., Ltd. and Subsidiaries and Ltd. Co., Holding Financial Cathay 27,142 10,288 94,380 43,308 69,672 12,456 (19,330) (94,239) (65,834) 338,444 514,907 145,555 201,399 (982,363) (841,019) (511,217) (529,470) 1,382,823 3,670,887 1,279,373 1,671,123 2,599,325 (4,669,349) (4,473,224) (9,905,644) (1,117,750) $1,779,833 10,051,936 US$ (1,140,071) 39,169 4,518,160 (7,055,336) (11,573,496) (80,624) 5,915,265 - - - - (5,148) 89,573 28,465 49,327 (29,699) 857,706 325,090 106,383 393,612 2014.1.1~2014.12.31 (140,760) (610,827) (167,505) 2,982,412 1,368,524 2,201,638 4,599,536 6,364,225 (2,977,965) (2,080,366) 43,697,193 10,694,822 40,428,188 52,807,475 16,271,075 82,138,671 NT$ (31,042,678) (26,576,197) (16,154,452) (35,320,897) (16,731,241) 116,000,041 $56,242,720 317,641,171 (147,551,421) (141,353,891) (313,018,342) (36,026,232) 1,237,745 142,773,828 (222,948,632) (365,722,460) (2,547,715) 186,922,400 English Translation of Financial Statements Originally in Chinese Issued Statements Financial of English Translation Items 2014 Annual Report 2014 Annual Subtotal Subtotal of Changes in operating assets and liabilities assets and in operating Changes of Subtotal Amortizations expenses Amortizations expenseBad debt t or loss t or f pro through value fair at liabilities assets and f nancial losses on Net Interest expenses Interest Depreciation expenses Depreciation Interest revenue Interest Dividend income Dividend Net changes in insurance liabilities and provisions and liabilities in insurance changes Net Net changes of other liabilities and provisions and liabilities other of changes Net Share of gain of associates and joint ventures accounted for using the equity method the equity using for accounted ventures joint and associates of gain of Share (Gains) losses on disposal or scrapping of property and equipment and property of scrapping disposal losses or on (Gains) (Gains) losses on disposal of investment properties investment disposal losses of on (Gains) Gains on disposal of investments disposal of on Gains Gains on disposal of investments accounted for using the equity method the equity using for accounted investments disposal of on Gains nancial assets f nancial losses on Impairment nancial assets f nancial non- losses on Impairment nancial assets f nancial non- losses on impairment Reversal of Unrealized foreign exchange losses exchange foreign Unrealized Losses on redeeming corporate bonds payable bonds corporate Losses redeeming on Revaluation gains on investment properties investment on gains Revaluation Others Subtotal Subtotal Decrease in reserves for the operations and liabilities and Decrease the operations in reserves for liabilities f nancial in other Increase Increase in securities purchased under agreements to resell to agreements under in securities purchased Increase (decrease) in payables Increase in deposits Increase Decrease (increase) in accounts receivable Decrease in accounts (increase) in loans Increase t before income tax from continuing operations continuing tax from income t before f Pro Increase (decrease) in other liabilities (decrease) in other Increase Changes in operating liabilities in operating Changes ts bene f employee of the liabilities for (decrease) in provisions Increase (Increase) decrease in reinsurance contract assets contract decrease in reinsurance (Increase) Adjustments : Adjustments Increase (decrease) in due to the Central Bank and call loans from banks call the from Central to Bank loans and (decrease) in due Increase Changes in operating assets in operating Changes Increase in due from the Central Bank and call loans to banks call the to Central Bank loans and from in due Increase ects e f f ow cash no with adjustments other and Income t or loss t or f pro through value fair at Decrease liabilities in f nancial nancial assets held to maturity to assets held in f nancial Increase t or loss t or f pro through value fair at assets Decrease in f nancial (increase) nancial liabilities for hedging hedging for liabilities f nancial (Decrease) in derivative increase nancial assets f nancial in other Increase nancial assets f nancial Decrease in available-for-sale (increase) nancial assets for hedging assets for f nancial Decrease in derivative Increase in other assets in other Increase Subtotal of Adjustment of Subtotal Changes in operating assets and liabilities assets and in operating Changes ows from operating activities operating from Cash f ows 47 English Translation of Financial Statements Originally Issued in Chinese Cathay Financial Holding Co., Ltd. Balance Sheets As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $3,420,967 $108,259 $3,464,767 $116,150 $6,482,973 $223,166 Available-for-sale fnancial assets -net 706,037 22,343 556,865 18,668 529,796 18,237 Securities purchased under agreements to resell 500,871 15,850 465,060 15,590 658,625 22,672 Receivables -net 4,626,627 146,412 3,731,473 125,091 2,858,180 98,388 Current income tax assets 7,373,549 233,340 5,584,675 187,217 3,596,184 123,793 Held-to-maturity fnancial assets -net 31,000,000 981,013 31,000,000 1,039,222 31,000,000 1,067,126 Investments accounted for using the equity method -net 455,721,914 14,421,580 384,108,973 12,876,600 328,085,643 11,293,826 Property and equipment -net 6,728 213 6,245 209 4,739 163 Intangible assets -net 22,607 715 - - - - Deferred tax assets -net 1,248,649 39,514 1,265,131 42,412 967,668 33,310 Other assets -net 146,133 4,624 170,126 5,703 161,978 5,576 Total assets $504,774,082 $15,973,863 $430,353,315 $14,426,862 $374,345,786 $12,886,257

Liabilities & equity Liabilities Financial liabilities at fair value through proft or loss $- $- $- $- $549,745 $18,924 Commercial paper payable -net 20,350,000 643,987 5,960,000 199,799 - - Payables 10,849,206 343,329 8,340,650 279,606 5,940,873 204,505 Current income tax liabilities 176,336 5,580 37,003 1,240 - - Bonds payable 40,000,000 1,265,823 40,000,000 1,340,932 47,312,376 1,628,653 Provisions 707,839 22,400 671,562 22,513 864,469 29,758 Deferred tax liabilities 22 1 1 - 35,202 1,212 Other liabilities 9,541 302 14,237 477 3,422 118 Total liabilities 72,092,944 2,281,422 55,023,453 1,844,567 54,706,087 1,883,170

Equity Capital stock Common stock 125,632,102 3,975,699 119,649,621 4,011,050 108,653,851 3,740,236 Capital surplus 88,782,304 2,809,567 89,063,184 2,985,692 78,508,148 2,702,518 Retained earnings Legal reserve 19,784,401 626,089 16,922,773 567,307 15,222,599 524,014 Special reserve 82,305,614 2,604,608 82,314,780 2,759,463 82,314,780 2,833,555 Undistributed earnings 61,107,449 1,933,780 37,287,956 1,250,015 16,296,275 560,973 Other equity 55,069,268 1,742,698 30,091,548 1,008,768 25,823,918 888,947 Treasury stock - - - - (7,179,872) (247,156) Total equity 432,681,138 13,692,441 375,329,862 12,582,295 319,639,699 11,003,087 Total liabilities and equity $504,774,082 $15,973,863 $430,353,315 $14,426,862 $374,345,786 $12,886,257

48 English Translation of Financial Statements Originally Issued in Chinese Cathay Financial Holding Co., Ltd. Statements of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earning per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Income Gains on investment-equity method $51,177,269 $1,619,534 $40,273,078 $1,350,086 Other operating income 986,929 31,232 1,081,922 36,269 52,164,198 1,650,766 41,355,000 1,386,355 Expenses and loss Operating expenses (602,769) (19,075) (777,226) (26,055) Other expenses and losses (1,360,304) (43,048) (3,064,775) (102,741) (1,963,073) (62,123) (3,842,001) (128,796) Proft before income tax from continuing operations 50,201,125 1,588,643 37,512,999 1,257,559 Income tax beneft (678,678) (21,477) 303,037 10,159 Net Income 49,522,447 $1,567,166 37,816,036 $1,267,718

Other comprehensive income Unrealized gains from available-for-sale fnancial assets 149,172 $4,721 48,505 $1,626 Share of other comprehensive income of associates and joint ventures accounted for using the equity method 25,662,587 812,107 4,228,291 141,746 Income tax relating to the components of other comprehensive income (21,822) (691) (9,166) (307) Other comprehensive income, net of tax 25,789,937 816,137 4,267,630 143,065 Total comprehensive income $75,312,384 $2,383,303 $42,083,666 $1,410,783

Earnings per share (expressed in dollars) Basic earnings per share: Net income $3.94 $0.12 $3.12 $0.10 2014 Annual Report 2014 Annual

49 ------(432) 6,819 (5,482) 426,014 (567,957) (250,277) US$ 1,267,718 1,567,166 $10,715,378 $11,877,527 816,137 816,137 2,383,303 - $12,582,295 279,060 $12,582,295 1,410,783 143,065 1,410,783 $13,692,441 $13,692,441 ------Total equity Total (13,665) 203,408 (163,499) NT$ (7,465,770) 12,708,000 37,816,036 49,522,447 (17,947,443) $375,329,862 $319,639,699 $375,329,862 25,789,937 25,789,937 75,312,384 - 8,324,35 42,083,666 4,267,630 42,083,666 $432,681,138 $432,681,138 ------$- US$ $(240,693) - - - - 240,693 $- 240,693 - - - $- $------$- Treasury stock stock Treasury NT$ $(7,179,872) - - - - 7,179,872 $- 7,179,872 - - - $- $------$(41) $(30) US$ (15) (15) - - - $(32) 9 9 9 $(45) ------Others $(953) NT$ $(1,230) (484) (484) - - - $(953) 277 277 $(1,437) $(1,437) ------$- US$ $317,432 $335,492 $316,701 26,434 26,434 26,434 (25,703) - - 335,492 335,492 ------$- NT$ 10,007,738 $10,007,738 Revaluation surplus Revaluation 835,299 835,299 835,299 ($812,217) - - $10,007,738 10,007,738 $10,030,820 $10,030,820 ------US$ (19,925) $32,742 $12,098 (6,388) (6,388) - - - $12,817 (19,925) $5,710 $5,710 ------ow hedgesf ow NT$ Gains on cash on Gains (594,376) (594,376) $382,306 $976,682 $382,306 (201,853) (201,853) - - - $180,453 $180,453 Other equity ------US$ (191,085) (191,085) $869,278 $640,205 760,352 760,352 760,352 - $678,193 - $678,193 $1,400,557 $1,400,557 ------f nancial assets NT$ available-for-sale available-for-sale (5,700,072) (5,700,072) $20,230,491 $25,930,563 $20,230,491 Unrealized gains from from gains Unrealized 24,027,155 24,027,155 24,027,155 - - - $44,257,646 $44,257,646 ------US$ $(17,702) $(36,276) $(16,710) 35,754 35,754 35,754 - - - 18,574 18,574 18,574 $19,044 $19,044 ------operation of a foreign a foreign of resulting from from resulting translating the translating NT$ $(528,034) $(1,082,097) nancial statements f nancial statements 1,129,820 1,129,820 1,129,820 - - - $(528,034) 554,063 554,063 554,063 erences erences di f Exchange $601,786 $601,786 - 290 8,456 (6,459) (56,995) (90,558) (567,957) (250,277) (189,319) (250,277) $546,305 US$ 1,567,166 1,267,718 1,567,166 $1,179,999 25,703 - 25,703 - - $1,250,015 1,267,718 - 1,267,718 $1,933,780 $1,933,780 - 9,166 267,215 (192,641) NT$ (Expressed in thousands of dollars) of (Expressed in thousands (1,700,174) (2,861,628) (7,465,770) (5,982,481) (7,465,770) 37,816,036 49,522,447 (17,947,443) $16,296,275 $37,287,956 Undistributed earnings Undistributed 812,217 - 49,522,447 812,217 - - $37,287,956 - - 37,816,036 $61,107,449 $61,107,449 ------Equity attributable to owners of parent of owners to attributable Equity Statements of Changes in Equity Changes of Statements Cathay Financial Holding Co., Ltd. Co., Holding Financial Cathay For the years ended the years 31 December 2013 2014 and For ($290) US$ $2,759,463 $2,604,898 ------$2,759,463 - - - $2,604,608 $2,604,608 ------($9,166) Special reserve Retained earnings NT$ $82,314,780 $82,314,780 ------$82,314,780 - - - $82,305,614 $82,305,614 ------56,995 90,558 US$ $510,312 $535,531 ------$567,307 - - - $626,089 $626,089 ------Legal reserve NT$ 1,700,174 2,861,628 $16,922,773 $15,222,599 $16,922,773 ------$19,784,401 $19,784,401 ------977 (432) 6,819 (8,456) 307,677 US$ $2,985,692 $2,631,852 $2,818,455 - - - - 38,367 38,367 - - - $2,809,567 $2,809,567 English Translation of Financial Statements Originally in Chinese Issued Statements Financial of English Translation ------29,142 (13,665) 203,408 Capital surplus Capital (267,215) NT$ 9,178,000 $89,063,184 $78,508,148 $89,063,184 - - - - 1,144,486 1,144,486 - - - $88,782,304 $88,782,304 ------Capital stock Capital 189,319 250,277 US$ $3,642,436 $3,786,380 ------$4,011,050 - - - 118,337 118,337 $3,975,699 $3,975,699 ------Common stock Common 3,530,000 NT$ 5,982,481 7,465,770 $108,653,851 $119,649,621 ------$119,649,621 - - - $125,632,102 $125,632,102 Items and joint ventures accounted for using method equity the time adoption of TIFRS of adoption time 31 December 2014 31 December 2013(adjusted) 2012(Note1) reserve Legal 2013(Note2) stock paid and book value Cash dividends Cash Stock dividend 2013(adjusted) Share Share of changes in net assets of associates ended 31 December 2013 T e capital reserve set aside the for f rst- 2014 ended 31 December 2014 Balance on 1 January 2013(adjusted) January 1 on Balance Comprehensive income for the year ended ended year the for income Comprehensive Other 2014 December 31 on Balance Balance on 31 December 2013(adjusted) December 31 on Balance 2014(adjusted) January 1 on Balance Comprehensive income for the year ended ended year the for income Comprehensive Increase in cash capital Appropriations and distribution for Appropriations and distribution for Legal reserve Value di f erence between price of subsidiary Cash dividends Share-based payment transaction Stock dividend Stock Other Reversal of special Reversal of reserve Net income for the year ended 31 December Other additional paid-in capital paid-in additional Other Other comprehensive income for the year year the for income comprehensive Other Net income for the year ended 31 December Other comprehensive income for the year year the for income comprehensive Other 50 Income. Comprehensive of s Statements year' current been from deducted have $1,494 (US$50) thousands bonuses employees' and $5,400 (US$181) thousands remuneration 31 December 2012, directors' of As Note1: Income. Comprehensive of Statements year's current been from deducted have $2,394 (US$76) thousands bonuses employees' and $3,300 (US$104) thousands remuneration 31 December 2013, directors' of As Note2: English Translation of Financial Statements Originally Issued in Chinese Cathay Financial Holding Co., Ltd. Statements of Cash Flows For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Cash fows from operating activities Proft before income tax from continuing operations $50,201,125 $1,588,643 $37,512,999 $1,257,559 Adjustments : Income and other adjustments with no cash fow efects Depreciation 1,446 46 1,322 44 Amortizations 3,989 126 - - Net losses on fnancial assets and liabilities at fair value through proft or loss - - 1,685,578 56,506 Interest expense 1,240,359 39,252 1,226,551 41,118 Interest income (979,168) (30,986) (1,001,814) (33,584) Share of loss of associates and joint ventures accounted for using the equity method (51,177,269) (1,619,534) (40,273,078) (1,350,086) Loss on disposal of property and equipment 328 10 133 4 Efects of exchange rate changes (99) (3) 36,003 1,207 Losses on redeeming corporate bonds payable - - 203,372 6,818 Others - - 203,408 6,819 Changes in operating assets and liabilities Decrease in available-for-sale fnancial assets - - 21,436 718 Decrease in accounts receivable 33,823 1,070 31,854 1,068 Decrease (increase) in other assets 23,533 745 (6,247) (209) Decrease in fnancial liabilities at fair value through proft or loss - - (182,100) (6,105) Increase in payables 2,508,556 79,385 2,398,255 80,397 Increase (decrease) in provision 36,277 1,148 (192,907) (6,467) (Decrease) increase in other liabilities (4,696) (148) 11,963 401 Cash generated from operations Interest received 50,192 1,588 96,667 3,241 Interest paid (1,240,359) (39,252) (1,171,061) (39,258) Income tax paid (2,333,537) (73,846) (1,990,282) (66,721) Net cash used in operating activities (1,635,500) (51,756) (1,387,948) (46,530) Cash fows from investing activities Acquisition of investments accounted for using the equity method - - (89,010) (2,984) Acquisition of property and equipment (2,257) (72) (2,960) (99) Acquisition of intangible assets (26,596) (842) - - Decrease (increase) in other assets 459 15 (1,901) (64) Dividends received 5,913,249 187,128 405,535 13,595 Net cash from investing activities 5,884,855 186,229 311,664 10,448 Cash fows from fnancing activities Increase in commercial paper payable 14,390,000 455,380 5,960,000 199,799 Redemption of corporate bonds - - (1,299,728) (43,571) Payment of cash dividends (17,947,443) (567,957) (7,465,770) (250,277) Increase in cash capital - - 12,708,000 426,014 Acquisition of subsidiary (700,000) (22,152) (12,001,986) (402,346) Net cash fows used in fnancing activities (4,257,443) (134,729) (2,099,484) (70,381) Efects of exchange rate changes on cash and cash equivalents 99 3 (36,003) (1,207) Decrease in cash and cash equivalents (7,989) (253) (3,211,771) (107,670) Cash and cash equivalents at the beginning of periods 3,929,827 124,362 7,141,598 239,410 Cash and cash equivalents at the end of periods $3,921,838 $124,109 $3,929,827 $131,740

Te components of cash and cash equivalents Cash and cash equivalents presented in balance sheet $3,420,967 $108,259 $3,464,767 $116,150 Bills sold under agreements to resell satisfed the defnition of cash and cash equivalents under IAS No.7 500,871 15,850 465,060 15,590 Cash and cash equivalents at the end of periods $3,921,838 $124,109 $3,929,827 $131,740 2014 Annual Report 2014 Annual

51 English Translation of Financial Statements Originally Issued in Chinese Cathay Life Insurance Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $330,476,291 $10,458,110 $280,220,355 $9,393,911 $362,775,487 $12,487,969 Receivables 53,670,316 1,698,428 47,362,820 1,587,758 57,308,138 1,972,741 Financial asset at fair value through proft or loss 61,350,401 1,941,468 73,022,597 2,447,958 72,429,213 2,493,260 Available-for-sale fnancial assets 1,297,762,857 41,068,445 1,272,046,334 42,643,189 1,221,734,264 42,056,257 Derivative fnancial assets for hedging 212,898 6,737 453,713 15,210 1,142,094 39,315 Investments accounted for using the equity method 32,732,273 1,035,831 9,039,485 303,033 7,144,025 245,922 Investment in debt securities with no active market 1,252,861,836 39,647,526 1,020,141,716 34,198,516 814,453,830 28,036,276 Held-to-maturity fnancial assets 24,092,675 762,427 - - - - Other fnancial assets 39,200,000 1,240,506 40,900,000 1,371,103 23,500,000 808,950 Investment property 389,821,829 12,336,134 363,191,672 12,175,383 312,615,668 10,761,297 Loans 693,036,495 21,931,535 635,816,106 21,314,653 518,169,293 17,837,153 Reinsurance contract assets 234,239 7,413 327,397 10,975 9,162,513 315,405 Property and equipment 25,991,832 822,526 35,862,947 1,202,244 44,800,678 1,542,192 Intangible assets 92,132 2,916 102,258 3,428 147,816 5,088 Deferred tax assets 13,287,147 420,479 12,221,216 409,696 16,106,670 554,447 Other assets 14,372,124 454,814 17,185,550 576,116 15,417,746 530,731 Separate account product assets 461,938,772 14,618,316 375,890,055 12,601,075 329,200,798 11,332,213 Total assets $4,691,134,117 $148,453,611 $4,183,784,221 $140,254,248 $3,806,108,233 $131,019,216

Liabilities Payables $23,251,477 $735,806 $18,300,775 $613,502 $37,262,033 $1,282,686 Financial liability at fair value through proft or loss 49,783,588 1,575,430 16,148,024 541,335 2,079,457 71,582 Derivative fnancial liabilities for hedging - - 5,148 173 - - Preferred stock liability 30,000,000 949,367 30,000,000 1,005,699 30,000,000 1,032,702 Insurance liability 3,693,113,630 116,870,684 3,375,731,754 113,165,664 3,078,719,365 105,980,013 Reserve for insurance contract with feature of fnancial instruments 50,140,033 1,586,710 52,911,209 1,773,758 56,461,371 1,943,593 Foreign exchange volatility reserve 16,846,406 533,114 10,482,181 351,397 4,270,856 147,017 Liability reserve 3,760,112 118,991 3,919,223 131,385 3,812,483 131,239 Deferred tax liability 28,753,996 909,936 21,254,376 712,517 20,217,430 695,953 Other liability 8,516,824 269,520 8,576,689 287,519 11,301,227 389,027 Separate account product liabilities 461,938,772 14,618,316 375,890,055 12,601,075 329,200,798 11,332,213 Total liabilities 4,366,104,838 138,167,874 3,913,219,434 131,184,024 3,573,325,020 123,006,025

Stockholders' equity Capital stock 53,065,274 1,679,281 53,065,274 1,778,923 53,065,274 1,826,688 Capital surplus 13,029,142 412,315 13,038,791 437,103 13,009,649 447,836 Retained earnings 218,719,393 6,921,500 169,837,067 5,693,499 142,238,530 4,896,335 Others 40,215,470 1,272,641 34,623,655 1,160,699 24,469,760 842,332 Total stockholders' equity 325,029,279 10,285,737 270,564,787 9,070,224 232,783,213 8,013,191 Total liabilities and stockholders' equity $4,691,134,117 $148,453,611 $4,183,784,221 $140,254,248 $3,806,108,233 $131,019,216 Cathay Life Insurance Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share) 2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $763,525,423 $24,162,197 $674,612,450 $22,615,235 Operating costs (715,252,009) (22,634,557) (629,986,028) (21,119,210) Operating expenses (15,343,740) (485,562) (14,529,595) (487,080) Operating proft 32,929,674 1,042,078 30,096,827 1,008,945 Non-operating income and expenses 1,505,533 47,643 1,152,106 38,622 Proft from continuing operations before income tax 34,435,207 1,089,721 31,248,933 1,047,567 Income tax expense (2,656,244) (84,058) (3,650,396) (122,373) Proft from continuing operations afer income tax 31,778,963 1,005,663 27,598,537 925,194 Net income 31,778,963 1,005,663 27,598,537 925,194 Other comprehensive income (loss) 22,695,178 718,202 10,153,895 340,392 Total comprehensive income (loss) $54,474,141 $1,723,865 $37,752,432 $1,265,586

Primary earnings per share $5.99 $0.19 $5.20 $0.17

52 English Translation of Financial Statements Originally Issued in Chinese Cathay Century Insurance Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $6,897,830 $218,286 $6,998,187 $234,602 $5,025,506 $172,995 Receivables 3,375,267 106,812 3,540,497 118,689 3,160,638 108,800 Financial asset at fair value through proft or loss 1,303,979 41,265 1,172,111 39,293 385,460 13,269 Available-for-sale fnancial assets 7,583,753 239,992 6,391,927 214,279 7,750,552 266,800 Derivative fnancial assets for hedging 3,747 119 10,022 336 17,134 590 Investments accounted for using the equity method 1,111,548 35,176 825,721 27,681 679,562 23,393 Investment in debt securities with no active market 2,761,546 87,391 1,897,332 63,605 1,172,459 40,360 Held-to-maturity fnancial assets 2,348,632 74,324 1,668,787 55,943 2,512,011 86,472 Loans 397,313 12,573 422,521 14,164 522,080 17,972 Reinsurance contract assets 4,721,960 149,429 4,388,987 147,133 5,118,300 176,189 Property and equipment 169,014 5,348 202,393 6,785 101,738 3,502 Intangible assets 9,610 304 10,110 339 21,323 734 Deferred tax assets 85,089 2,693 77,223 2,589 80,750 2,780 Other assets 640,448 20,267 655,369 21,970 780,458 26,866 Total assets $31,409,736 $993,979 $28,261,187 $947,408 $27,327,971 $940,722

Liabilities Payables $2,470,745 $78,188 $2,333,838 $78,238 $2,098,220 $72,228 Financial liability at fair value through proft or loss 176,626 5,589 28,352 950 - - Preferred stock liability 1,000,000 31,646 1,000,000 33,523 1,000,000 34,423 Insurance liability 20,720,649 655,717 19,159,600 642,293 19,080,300 656,809 Liability reserve 235,740 7,460 236,272 7,921 247,950 8,535 Deferred tax liability 58,441 1,849 24,404 818 17,949 618 Other liability 584,442 18,495 317,734 10,652 366,509 12,617 Total liabilities 25,246,643 798,944 23,100,200 774,395 22,810,928 785,230

Stockholders' equity Capital stock 2,721,879 86,136 2,721,879 91,246 2,522,950 86,849 Capital surplus - - 1,929 65 1,929 66 Retained earnings 3,364,426 106,469 2,532,547 84,899 1,956,035 67,333 Others 76,788 2,430 (95,368) (3,197) 36,129 1,244 Total stockholders' equity 6,163,093 195,035 5,160,987 173,013 4,517,043 155,492 Total liabilities and stockholders' equity $31,409,736 $993,979 $28,261,187 $947,408 $27,327,971 $940,722

Cathay Century Insurance Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share) 2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $14,381,459 $455,110 $13,043,250 $437,253 Operating costs (8,659,085) (274,022) (7,786,817) (261,040) Operating expenses (4,701,120) (148,770) (4,249,666) (142,463) Operating proft 1,021,254 32,318 1,006,767 33,750 Non-operating income and expenses (15,904) (503) (13,013) (436) Proft from continuing operations before income tax 1,005,350 31,815 993,754 33,314 Income tax expense (173,471) (5,490) (218,313) (7,319) Proft from continuing operations afer income tax 831,879 26,325 775,441 25,995 Net income 831,879 26,325 775,441 25,995 Other comprehensive income (loss) 172,156 5,448 (131,497) (4,408) 2014 Annual Report 2014 Annual Total comprehensive income (loss) $1,004,035 $31,773 $643,944 $21,587

Primary earnings per share $3.06 $0.10 $2.85 $0.10

53 English Translation of Financial Statements Originally Issued in Chinese Cathay Lujiazui Life Insurance Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $1,184,590 $37,487 $1,352,570 $45,343 $1,792,193 $61,693 Receivables 314,712 9,959 264,320 8,861 399,447 13,750 Financial asset at fair value through proft or loss 868,464 27,483 870,101 29,169 370,475 12,753 Available-for-sale fnancial assets 4,776,082 151,142 2,442,558 81,883 4,652,993 160,172 Investment in debt securities with no active market 3,705,711 117,269 3,208,260 107,551 2,450,786 84,364 Held-to-maturity fnancial assets 1,847,955 58,480 1,619,138 54,279 - - Loans 45,080 1,427 36,277 1,216 32,347 1,114 Reinsurance contract assets 53,402 1,690 356,060 11,936 7,683 265 Property and equipment 108,625 3,438 131,182 4,398 128,242 4,415 Intangible assets 65,424 2,070 81,713 2,739 94,237 3,244 Other assets 1,943,532 61,504 1,226,970 41,132 1,195,782 41,163 Separate account product assets 328,004 10,380 362,681 12,158 356,448 12,270 Total assets $15,241,581 $482,329 $11,951,830 $400,665 $11,480,633 $395,203

Liabilities Short-term debt $232,615 $7,361 $- $- $297,268 $10,233 Payables 542,063 17,154 916,486 30,723 714,954 24,611 Reserve for insurance contract with feature of fnancial instruments 4,954,666 156,793 4,685,240 157,065 4,889,501 168,314 Insurance liability 5,167,627 163,532 4,467,636 149,770 3,634,056 125,097 Other liability 83,540 2,644 37,277 1,250 19,354 666 Separate account product liabilities 328,004 10,380 362,681 12,158 356,448 12,270 Total liabilities 11,308,515 357,864 10,469,320 350,966 9,911,581 341,191

Stockholders' equity Capital stock 7,067,795 223,664 5,134,155 172,114 5,134,155 176,735 Retained earnings (3,848,524) (121,789) (3,999,591) (134,079) (3,916,879) (134,832) Others 713,795 22,590 347,946 11,664 351,776 12,109 Total stockholders' equity 3,933,066 124,465 1,482,510 49,699 1,569,052 54,012 Total liabilities and stockholders' equity $15,241,581 $482,329 $11,951,830 $400,665 $11,480,633 $395,203

Cathay Lujiazui Life Insurance Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $3,190,054 $100,951 $2,617,974 $87,763 Operating costs (2,037,063) (64,464) (1,773,299) (59,447) Operating expenses (988,417) (31,279) (929,400) (31,156) Operating proft (loss) 164,574 5,208 (84,725) (2,840) Non-operating income and expenses (13,507) (427) 2,013 67 Proft (loss) from continuing operations before income tax 151,067 4,781 (82,712) (2,773) Income tax expenses - - - - Proft (loss) from continuing operations afer income tax 151,067 4,781 (82,712) (2,773) Net income (loss) 151,067 4,781 (82,712) (2,773) Other comprehensive income (loss) 365,849 11,577 (3,830) (128) Total comprehensive income (loss) $516,916 $16,358 $(86,542) $(2,901)

Primary earnings per share Note Note Note Note

Note: Cathay Lujiazui Life Insurance Co., Ltd. is a limited company, there is no information about earnings per share.

54 English Translation of Financial Statements Originally Issued in Chinese Cathay Life Insurance Company (Vietnam) Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $297,319 $9,409 $289,253 $9,697 $615,771 $21,197 Receivables 224,703 7,111 202,001 6,772 79,948 2,752 Available-for-sale fnancial assets 3,569,578 112,961 2,863,231 95,985 932,943 32,115 Loans 13,589 430 11,456 384 9,305 320 Property and equipment 21,233 672 6,096 204 18,322 631 Intangible assets 63 2 119 4 5,742 198 Other assets 39,711 1,257 47,203 1,582 43,714 1,505 Total assets $4,166,196 $131,842 $3,419,359 $114,628 $1,705,745 $58,718

Liabilities Payables $43,258 $1,369 $11,837 $397 $14,581 $502 Insurance liability 456,400 14,443 380,516 12,756 305,830 10,528 Total liabilities 499,658 15,812 392,353 13,153 320,411 11,030

Stockholders' equity Capital stock 3,424,930 108,384 3,424,930 114,815 1,940,080 66,784 Retained earnings 199,541 6,315 38,869 1,303 (81,404) (2,802) Others 42,067 1,331 (436,793) (14,643) (473,342) (16,294) Total stockholders' equity 3,666,538 116,030 3,027,006 101,475 1,385,334 47,688 Total liabilities and stockholders' equity $4,166,196 $131,842 $3,419,359 $114,628 $1,705,745 $58,718

Cathay Life Insurance Company (Vietnam) Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $507,469 $16,059 399,437 13,391 Operating costs (110,810) (3,507) (107,784) (3,613) Operating expenses (174,787) (5,531) (170,744) (5,724) Operating proft 221,872 7,021 120,909 4,054 Non-operating income and expenses (11,925) (377) 8 - Proft from continuing operations before income tax 209,947 6,644 120,917 4,054 Income tax expenses (49,275) (1,559) (644) (22) Proft from continuing operations afer income tax 160,672 5,085 120,273 4,032 Net income 160,672 5,085 120,273 4,032 Other comprehensive income (loss) 478,860 15,153 36,549 1,225 Total comprehensive income (loss) $639,532 $20,238 $156,822 $5,257

Primary earnings per share Note Note Note Note Report 2014 Annual

Note: Cathay Life Insurance Company (Vietnam) is a limited company, there is no information about earnings per share.

55 English Translation of Financial Statements Originally Issued in Chinese Lin Yuan (Shanghai) Real Estate Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Current assets $288,212 $9,121 $204,339 $6,850 $411,418 $14,163 Investment property-net 6,882,448 217,799 3,011,107 100,942 - - Property and equipment 671,993 21,265 669,348 22,439 3,276,008 112,771 Total assets $7,842,653 $248,185 $3,884,794 $130,231 $3,687,426 $126,934

Liabilities Current liability $22,726 $719 $5,559 $186 $5,377 $185 Deferred tax liability 97,312 3,079 27,256 914 - - Other liability 102,121 3,232 13,588 456 - - Total liabilities 222,159 7,030 46,403 1,556 5,377 185

Stockholders' equity Capital stock 7,223,435 228,590 3,773,774 126,509 3,773,774 129,906 Retained earnings (121,537) (3,846) (194,090) (6,507) (57,490) (1,979) Others 518,596 16,411 258,707 8,673 (34,235) (1,178) Total stockholders' equity 7,620,494 241,155 3,838,391 128,675 3,682,049 126,749 Total liabilities and stockholders' equity $7,842,653 $248,185 $3,884,794 $130,231 $3,687,426 $126,934

Lin Yuan (Shanghai) Real Estate Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $270,699 $8,566 $17,141 $575 Operating expenses (100,866) (3,192) (155,861) (5,225) Operating proft (loss) 169,833 5,374 (138,720) (4,650) Non-operating income and expenses (30,482) (964) 2,120 71 Proft (loss) from continuing operations before income tax 139,351 4,410 (136,600) (4,579) Income tax expense (66,798) (2,114) - - Proft (loss) from continuing operations afer income tax 72,553 2,296 (136,600) (4,579) Net income (loss) 72,553 2,296 (136,600) (4,579) Other comprehensive income (loss) 259,889 8,224 292,942 9,820 Total comprehensive income (loss) $332,442 $10,520 $156,342 $5,241

Primary earnings per share Note Note Note Note

Note：Lin Yuan (Shanghai) Real Estate Co., Ltd. is a limited company, there is no information about earnings per share.

56 English Translation of Financial Statements Originally Issued in Chinese Cathay Woolgate Exchange Holding 1 Limited Condensed Balance Sheet As of 31 December 2014 (Expressed in thousands of dollars)

2014.12.31 Items NT$ US$ Assets Current assets $1,205,715 $38,156 Investment property 15,187,475 480,616 Total assets $16,393,190 $518,772

Liabilities Current liability $137,087 $4,338 Total liabilities 137,087 4,338

Stockholders' equity Capital stock 16,654,013 527,026 Retained earnings 131,587 4,164 Others (529,497) (16,756) Total stockholders' equity 16,256,103 514,434 Total liabilities and stockholders' equity $16,393,190 $518,772

Cathay Woolgate Exchange Holding 1 Limited Condensed Statement of Comprehensive Income For the year ended 31 December 2014 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 Items NT$ US$ Operating income $307,977 $9,746 Operating costs (1) - Operating expenses (114,883) (3,636) Operating loss 193,093 6,110 Non-operating income and loss - - Proft from continuing operations before income tax 193,093 6,110 Income tax expense (61,506) (1,946) Proft from continuing operations afer income tax 131,587 4,164 Net income 131,587 4,164 Other comprehensive (loss) income (529,497) (16,756) Total comprehensive (loss) income $(397,910) $(12,592)

Primary earnings per share Note Note Report 2014 Annual

Note：Cathay Woolgate Exchange Holding 1 Limited is a limited company, there is no information about earnings per share.

57 English Translation of Financial Statements Originally Issued in Chinese Cathay Woolgate Exchange Holding 2 Limited Condensed Balance Sheet As of 31 December 2014 (Expressed in thousands of dollars)

2014.12.31 Items NT$ US$ Assets Current assets $12,139 $384 Investment property 153,409 4,855 Total assets $165,548 $5,239

Liabilities Current liability $1,792 $57 Total liabilities 1,792 57

Stockholders' equity Capital stock 168,222 5,323 Retained earnings 876 28 Others (5,342) (169) Total stockholders' equity 163,756 5,182 Total liabilities and stockholders' equity $165,548 $5,239

Cathay Woolgate Exchange Holding 2 Limited Condensed Statement of Comprehensive Income For the year ended 31 December 2014 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 Items NT$ US$ Operating income $3,111 $98 Operating expenses (1,614) (51) Operating loss 1,497 47 Non-operating income and loss - - Proft from continuing operations before income tax 1,497 47 Income tax expense (621) (19) Proft from continuing operations afer income tax 876 28 Net income 876 28 Other comprehensive (loss) income (5,342) (169) Total comprehensive (loss) income $(4,466) $(141)

Primary earnings per share Note Note

Note：Cathay Woolgate Exchange Holding 2 Limited is a limited company, there is no information about earnings per share.

58 English Translation of Financial Statements Originally Issued in Chinese Cathay Insurance Co., Ltd (China) Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $1,100,841 $34,837 $1,101,188 $36,916 $405,943 $13,974 Receivables 199,929 6,327 141,935 4,758 141,039 4,855 Financial asset at fair value through proft or loss 210,164 6,651 139,915 4,691 51,813 1,784 Available-for-sale fnancial assets 672,852 21,293 842,974 28,259 653,940 22,511 Investment in debt securities with no active market 512,268 16,211 74,208 2,488 70,112 2,413 Reinsurance contract assets 874,262 27,666 493,754 16,552 308,462 10,618 Property and equipment 75,741 2,397 74,974 2,513 44,380 1,528 Intangible assets 15,854 502 18,176 609 6,998 241 Other assets 870,306 27,541 661,007 22,159 403,365 13,885 Total assets $4,532,217 $143,425 $3,548,131 $118,945 $2,086,052 $71,809

Liabilities Payables $388,420 $12,292 $268,756 $9,010 $119,446 $4,112 Insurance liability 2,639,751 83,536 2,465,042 82,636 1,292,161 44,480 Other liability 94,155 2,980 114,110 3,825 73,865 2,543 Total liabilities 3,122,326 98,808 2,847,908 95,471 1,485,472 51,135

Stockholders' equity Capital stock 3,707,999 117,342 2,717,129 91,087 1,745,942 60,101 Retained earnings (2,510,663) (79,451) (2,158,102) (72,347) (1,265,328) (43,557) Others 212,555 6,726 141,196 4,734 119,966 4,130 Total stockholders' equity 1,409,891 44,617 700,223 23,474 600,580 20,674 Total liabilities and stockholders' equity $4,532,217 $143,425 $3,548,131 $118,945 $2,086,052 $71,809

Cathay Insurance Co., Ltd (China) Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $2,526,754 $79,961 $1,752,590 $58,753 Operating costs (1,882,389) (59,569) (1,679,403) (56,299) Operating expenses (1,041,747) (32,967) (987,746) (33,113) Operating loss (397,382) (12,575) (914,559) (30,659) Non-operating income and loss 44,821 1,418 21,785 730 Loss from continuing operations before income tax (352,561) (11,157) (892,774) (29,929) Income tax expenses - - - - Loss from continuing operations afer income tax (352,561) (11,157) (892,774) (29,929) Net loss (352,561) (11,157) (892,774) (29,929) Other comprehensive income (loss) 71,359 2,258 21,230 712 Total comprehensive (loss) income $(281,202) $(8,899) $(871,544) $(29,217)

Primary earnings per share Note Note Note Note Report 2014 Annual

Note：Cathay Century (China) is a limited company, there is no information about earnings per share.

59 English Translation of Financial Statements Originally Issued in Chinese Cathay Insurance Co., Ltd (Vietnam) Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $24,441 $773 $95,397 $3,198 $245,601 $8,454 Receivables 74,541 2,359 43,082 1,444 34,975 1,204 Investment in debt securities with no active market 85,500 2,706 82,200 2,756 80,700 2,778 Held-to-maturity fnancial assets -net 298,631 9,450 287,150 9,626 - - Reinsurance contract assets 493,149 15,606 174,485 5,849 42,774 1,473 Property and equipment 13,978 442 25,998 872 38,271 1,317 Intangible assets 690 22 745 25 7,434 256 Other assets 38,926 1,232 24,860 833 16,766 577 Total assets $1,029,856 $32,590 $733,917 $24,603 $466,521 $16,059

Liabilities Payables $38,602 $1,222 $28,970 $971 $19,796 $681 Liability reserve 583,471 18,464 228,948 7,675 68,138 2,346 Deferred tax liability 40 1 1 - 356 12 Other liability 1,141 36 1,218 41 449 16 Total liabilities 623,254 19,723 259,137 8,687 88,739 3,055

Stockholders' equity Capital stock 645,585 20,430 645,585 21,642 517,502 17,814 Retained earnings (152,363) (4,822) (67,778) (2,272) (34,576) (1,190) Others (86,620) (2,741) (103,027) (3,454) (105,144) (3,620) Total stockholders' equity 406,602 12,867 474,780 15,916 377,782 13,004 Total liabilities and stockholders' equity $1,029,856 $32,590 $733,917 $24,603 $466,521 $16,059

Cathay Insurance Co., Ltd (Vietnam) Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $102,712 $3,250 $100,845 $3,381 Operating costs (106,082) (3,357) (43,557) (1,460) Operating expenses (81,252) (2,571) (90,645) (3,039) Operating loss (84,622) (2,678) (33,357) (1,118) Non-operating income and expenses 75 2 (205) (7) Loss from continuing operations before income tax (84,547) (2,676) (33,562) (1,125) Income tax (expenses) beneft (38) (1) 360 12 Loss from continuing operations afer income tax (84,585) (2,677) (33,202) (1,113) Net loss (84,585) (2,677) (33,202) (1,113) Other comprehensive income (loss) 16,407 519 2,117 71 Total comprehensive (loss) income $(68,178) $(2,158) $(31,085) $(1,042)

Primary earnings per share Note Note Note Note

Note：Cathay Century (Vietnam) is a limited company, there is no information about earnings per share.

60 English Translation of Financial Statements Originally Issued in Chinese Cathay United Bank Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $140,351,360 $4,441,499 $66,775,540 $2,238,536 $33,496,114 $1,153,050 Due from the Central Bank and call loans to banks 143,753,829 4,549,172 140,479,847 4,709,348 98,844,688 3,402,571 Financial assets at fair value through proft or loss 151,712,443 4,801,027 162,997,211 5,464,204 67,796,967 2,333,803 Derivative fnancial assets for hedging 448,745 14,201 837,179 28,065 1,203,138 41,416 Securities purchased under agreements to resell 33,059,521 1,046,187 7,645,763 256,311 - - Receivables-net 78,809,457 2,493,970 120,044,971 4,024,304 50,728,353 1,746,243 Assets held for sale -net - - 81,950 2,747 - - Discounts and loans-net 1,096,487,685 34,698,977 1,013,723,116 33,983,343 986,516,412 33,959,257 Available-for-sale fnancial assets 84,008,468 2,658,496 67,046,565 2,247,622 63,186,407 2,175,091 Held-to-maturity fnancial assets 51,147,071 1,618,578 50,711,678 1,700,023 20,542,870 707,156 Investments accounted for using the equity method 7,427,895 235,060 5,836,126 195,646 5,038,973 173,459 Other fnancial assets-net 9,678 306 22,154 743 13,619 469 Investment in debt securities with no active market 369,327,713 11,687,586 280,272,013 9,395,642 424,043,663 14,597,028 Property and equipment-net 22,190,496 702,231 22,240,641 745,580 21,896,653 753,757 Investment property-net 4,308,182 136,335 4,479,508 150,168 4,439,924 152,837 Intangible assets-net 7,050,372 223,113 7,045,413 236,185 7,164,320 246,620 Deferred tax assets 1,579,398 49,981 1,456,529 48,828 1,550,746 53,382 Other assets-net 19,393,789 613,727 7,143,444 239,472 4,542,369 156,364 Total assets $2,211,066,102 $69,970,446 $1,958,839,648 $65,666,767 $1,791,005,216 $61,652,503

Liabilities Due to the Central Bank and call loans from banks $57,797,121 $1,829,023 $50,630,112 $1,697,288 $51,891,103 $1,786,268 Funds borrowed from the Central Bank and other banks 1,585,900 50,187 1,497,500 50,201 1,456,800 50,148 Financial liabilities at fair value through proft or loss 57,705,513 1,826,124 11,271,187 377,847 4,967,738 171,006 Securities sold under agreements to repurchase 59,689,306 1,888,902 58,681,600 1,967,201 20,369,249 701,179 Payables 21,438,383 678,430 14,795,810 496,004 21,225,349 730,649 Deposits and remittances 1,711,904,075 54,174,180 1,596,302,557 53,513,328 1,520,735,366 52,348,894 Financial debentures payable 67,613,949 2,139,682 52,417,213 1,757,198 42,518,631 1,463,636 Other fnancial liabilities 79,842,351 2,526,657 36,145,158 1,211,705 17,426,191 599,869 Liability reserve 2,119,266 67,064 2,035,564 68,239 2,009,384 69,170 Deferred tax liability 1,457,439 46,121 618,631 20,739 634,704 21,849 Other liability 5,429,000 171,804 4,719,433 158,211 4,114,007 141,618 Total liabilities 2,066,582,303 65,398,174 1,829,114,765 61,317,961 1,687,348,522 58,084,286

Stockholders' equity Capital stock 67,112,762 2,123,821 64,668,494 2,167,901 52,277,026 1,799,554 Capital surplus 23,969,412 758,526 23,971,498 803,604 15,213,292 523,693 Retained earnings 49,455,600 1,565,051 39,956,742 1,339,482 34,763,003 1,196,661 Others 3,946,025 124,874 1,128,149 37,819 1,403,373 48,309 Total stockholders' equity 144,483,799 4,572,272 129,724,883 4,348,806 103,656,694 3,568,217 Total liabilities and stockholders' equity $2,211,066,102 $69,970,446 $1,958,839,648 $65,666,767 $1,791,005,216 $61,652,503 2014 Annual Report 2014 Annual

61 English Translation of Financial Statements Originally Issued in Chinese Cathay United Bank Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Interest income $38,679,541 $1,224,036 $32,973,623 $1,105,385 Interest expenses (13,944,268) (441,274) (12,051,044) (403,991) Net interest income 24,735,273 782,762 20,922,579 701,394 Non-interest income 20,199,432 639,222 15,795,786 529,527 Total income 44,934,705 1,421,984 36,718,365 1,230,921 Bad debt expense and reserve for loss on guarantees (2,324,557) (73,562) (577,765) (19,369) Operating expenses (22,165,037) (701,425) (19,616,450) (657,608) Proft from continuing operations before income tax 20,445,111 646,997 16,524,150 553,944 Income tax expenses (2,783,300) (88,079) (1,990,081) (66,714) Proft from continuing operations afer income tax 17,661,811 558,918 14,534,069 487,230 Net income 17,661,811 558,918 14,534,069 487,230 Other comprehensive income (loss) 2,802,484 88,686 (275,224) (9,226) Total comprehensive income (loss) $20,464,295 $647,604 $14,258,845 $478,004

Primary earnings per share $2.63 $0.08 $2.25 $0.08

62 English Translation of Financial Statements Originally Issued in Chinese Indovina Bank Limited Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $857,659 $27,141 $571,307 $19,152 $816,727 $28,114 Due from the Central Bank and call loans to banks 10,390,361 328,809 12,450,373 417,378 12,404,089 426,991 Financial assets at fair value through proft or loss 65,171 2,062 62,346 2,090 140,920 4,851 Available-for-sale fnancial assets 2,463,366 77,955 861,559 28,882 768,190 26,444 Receivables-net 266,886 8,446 793,781 26,610 369,539 12,721 Discounts and loans-net 20,208,091 639,496 16,301,693 546,486 15,808,657 544,188 Held-to-maturity fnancial assets 1,923,546 60,872 683,400 22,910 1,126,103 38,764 Property and equipment-net 445,688 14,104 403,407 13,524 281,343 9,685 Intangible assets-net 378,451 11,976 5,216 175 10,001 344 Deferred tax assets-net - - 171 6 15,769 543 Other assets-net 101,848 3,223 416,020 13,946 353,101 12,155 Total assets $37,101,067 $1,174,084 $32,549,273 $1,091,159 $32,094,439 $1,104,800

Liabilities Due to the Central Bank and call loans from banks $4,743,090 $150,098 $7,570,029 $253,772 $8,116,896 $279,411 Financial liabilities at fair value through proft or loss 9,313 295 - - - - Payables 926,822 29,330 427,360 14,326 1,295,180 44,584 Current income tax liabilities 194,013 6,139 43,062 1,444 26,548 914 Deposits and remittances 23,827,032 754,020 17,453,353 585,094 17,219,063 592,739 Liability reserve 9,950 315 - - - - Deferred tax liability 44,421 1,406 58,961 1,977 19,949 687 Other liability - - 118,528 3,973 75,672 2,605 Total liabilities 29,754,641 941,603 25,671,293 860,586 26,753,308 920,940

Stockholders' equity Capital stock 6,094,911 192,877 6,094,911 204,322 5,269,493 181,394 Retained earnings 1,183,884 37,465 1,141,007 38,250 638,078 21,965 Others 67,631 2,139 (357,938) (11,999) (566,440) (19,499) Total stockholders' equity 7,346,426 232,481 6,877,980 230,573 5,341,131 183,860 Total liabilities and stockholders' equity $37,101,067 $1,174,084 $32,549,273 $1,091,159 $32,094,439 $1,104,800

Indovina Bank Limited Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Interest income $1,924,777 $60,911 $2,073,619 $69,515 Interest expenses (1,004,295) (31,781) (1,147,918) (38,482) Net interest income 920,482 29,130 925,701 31,033 Non-interest income 112,385 3,556 156,005 5,230 Total income 1,032,867 32,686 1,081,706 36,263 Bad debt expense and reserve for loss on guarantees (62,126) (1,966) 54,701 1,834 Operating expenses (491,168) (15,543) (432,374) (14,495) Proft from continuing operations before income tax 479,573 15,177 704,033 23,602 Income tax expenses (106,266) (3,363) (201,104) (6,742) Proft from continuing operations afer income tax 373,307 11,814 502,929 16,860 Net income 373,307 11,814 502,929 16,860 Other comprehensive income (loss) 425,569 13,467 208,502 6,990 Total comprehensive income (loss) $798,876 $25,281 $711,431 $23,850

Primary earnings per share Note Note Note Note Report 2014 Annual

Note：Indovina Bank is a limited company, there is no information about earnings per share.

63 English Translation of Financial Statements Originally Issued in Chinese Cathay United Bank (Cambodia) Corporation Limited Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Cash and cash equivalents $1,445,313 $45,738 $909,957 $30,505 $678,535 $23,357 Due from the Central Bank and call loans to banks 728,988 23,069 392,546 13,159 521,843 17,964 Available-for-sale fnancial assets 812 26 766 26 - - Receivables-net 47,649 1,508 59,212 1,985 52,289 1,800 Discounts and loans-net 2,585,327 81,814 1,080,512 36,222 858,125 29,540 Other fnancial assets-net - - - - 728 25 Property and equipment-net 144,150 4,562 136,791 4,586 136,718 4,706 Intangible assets-net 11,007 348 7,647 256 5,971 206 Other assets-net 130,852 4,141 121,802 4,083 27,248 938 Total assets $5,094,098 $161,206 $2,709,233 $90,822 $2,281,457 $78,536

Liabilities Due to the Central Bank and call loans from banks $31,873 $1,009 $179,847 $6,029 $143 $5 Payables 84,768 2,682 52,664 1,765 38,488 1,325 Current income tax liabilities 1,133 36 1,175 39 - - Deposits and remittances 3,292,159 104,182 2,104,552 70,552 1,819,637 62,638 Other liability 340 11 607 20 5,183 179 Total liabilities 3,410,273 107,920 2,338,845 78,405 1,863,451 64,147

Stockholders' equity Capital stock 1,783,202 56,431 494,836 16,589 495,312 17,050 Retained earnings (203,413) (6,437) (133,869) (4,488) (77,205) (2,658) Others 104,036 3,292 9,421 316 (101) (3) Total stockholders' equity 1,683,825 53,286 370,388 12,417 418,006 14,389 Total liabilities and stockholders' equity $5,094,098 $161,206 $2,709,233 $90,822 $2,281,457 $78,536

Cathay United Bank (Cambodia) Corporation Limited Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Interest income $163,562 $5,176 $99,314 $3,329 Interest expenses (40,198) (1,272) (32,142) (1,077) Net interest income 123,364 3,904 67,172 2,252 Non-interest income 58,913 1,864 58,109 1,948 Total income 182,277 5,768 125,281 4,200 Bad debt expense and reserve for loss on guarantees (84,025) (2,659) (18,446) (618) Operating expenses (165,303) (5,231) (166,962) (5,597) Loss from continuing operations before income tax (67,051) (2,122) (60,127) (2,015) Income tax (expenses) proft (2,493) (79) 3,463 116 Loss from continuing operations afer income tax (69,544) (2,201) (56,664) (1,899) Net loss (69,544) (2,201) (56,664) (1,899) Other comprehensive income (loss) 94,615 2,994 9,522 319 Total comprehensive income (loss) $25,071 $793 $(47,142) $(1,580)

Primary earnings per share $(3.04) $(0.10) $(4.17) ($0.14)

64 English Translation of Financial Statements Originally Issued in Chinese Cathay Securities Corporation Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Current assets $20,099,651 $636,065 $15,409,801 $516,587 $14,366,771 $494,553 Available-for-sale fnancial assets 18 1 18 1 18 1 Investments accounted for using the equity method 1,075,677 34,040 1,010,746 33,883 802,854 27,637 Property and equipment 176,373 5,581 163,055 5,466 113,495 3,907 Intangible assets 60,022 1,899 27,861 934 12,128 418 Deferred tax assets 5,454 173 5,774 194 313,808 10,802 Other non-current assets 492,380 15,582 473,523 15,874 445,339 15,330 Total assets $21,909,575 $693,341 $17,090,778 $572,939 $16,054,413 $552,648

Liabilities Current liability $15,705,347 $497,004 $12,000,481 $402,296 $11,061,728 $380,782 Deferred tax liability 33,897 1,073 253 8 317,912 10,944 Other non-current liability 11,064 350 8,353 280 7,823 269 Total liabilities 15,750,308 498,427 12,009,087 402,584 11,387,463 391,995

Stockholders' equity Capital stock 4,700,000 148,734 3,982,027 133,491 3,866,660 133,104 Capital surplus 491,766 15,562 291,766 9,781 291,766 10,044 Retained earnings 750,430 23,748 610,174 20,455 499,055 17,179 Others 217,071 6,870 197,724 6,628 9,469 326 Total stockholders' equity 6,159,267 194,914 5,081,691 170,355 4,666,950 160,653 Total liabilities and stockholders' equity $21,909,575 $693,341 $17,090,778 $572,939 $16,054,413 $552,648

Cathay Securities Corporation Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Revenues $1,867,310 $59,092 $1,435,627 $48,127 Serivce fee expenses (72,663) (2,299) (48,073) (1,612) Employee beneft expenses (670,084) (21,205) (573,592) (19,229) Share of the proft of associates and joint ventures accounted for using the equity method 27,306 864 39,137 1,312 Operating expenses (780,065) (24,686) (639,849) (21,450) Non-oprating income and expenses 24,804 785 21,475 720 Proft from continuing operations before income tax 396,608 12,551 234,725 7,868 Income tax expenses (38,379) (1,214) (8,239) (276) Proft from continuing operations afer income tax 358,229 11,337 226,486 7,592 Net income 358,229 11,337 226,486 7,592 Other comprehensive income (loss) 19,347 612 188,255 6,311 Total comprehensive income (loss) $377,576 $11,949 $414,741 $13,903 2014 Annual Report 2014 Annual Primary earnings per share $0.84 $0.03 $0.54 $0.02

65 English Translation of Financial Statements Originally Issued in Chinese Cathay Venture Inc. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Current assets $482,414 $15,266 $398,984 $13,375 $663,149 $22,828 Available-for-sale fnancial assets 2,401,843 76,008 2,370,304 79,461 1,207,167 41,555 Investments accounted for using the equity method 150,822 4,773 64,028 2,146 228,616 7,870 Property and equipment 282 9 479 16 306 10 Deferred tax assets 9,487 300 13,325 447 18,881 650 Other non-current assets 837 26 837 28 680 23 Total assets $3,045,685 $96,382 $2,847,957 $95,473 $2,118,799 $72,936

Liabilities Current liability $5,649 $179 $5,331 $179 $4,874 $168 Deferred tax liability 3,147 99 4,704 158 3,216 111 Other non-current liability 2,075 66 1,207 40 478 16 Total liabilities 10,871 344 11,242 377 8,568 295

Stockholders' equity Capital stock 2,174,236 68,805 2,000,000 67,047 2,000,000 68,847 Retained earnings 322,574 10,208 242,128 8,117 205,204 7,064 Others 538,004 17,025 594,587 19,932 (94,973) (3,270) Total stockholders' equity 3,034,814 96,038 2,836,715 95,096 2,110,231 72,641 Total liabilities and stockholders' equity $3,045,685 $96,382 $2,847,957 $95,473 $2,118,799 $72,936

Cathay Venture Inc. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $287,056 $9,084 $249,374 $8,360 Operating cost (20,107) (636) (40,407) (1,355) Operating expenses (13,255) (419) (10,135) (340) Non-oprating income and expenses 2,701 85 319 11 Proft from continuing operations before income tax 256,395 8,114 199,151 6,676 Income tax expenses (1,713) (54) (5,556) (186) Proft from continuing operations afer income tax 254,682 8,060 193,595 6,490 Net income 254,682 8,060 193,595 6,490 Other comprehensive (loss) income (56,583) (1,791) 689,560 23,116 Total comprehensive income (loss) $198,099 $6,269 $883,155 $29,606

Primary earnings per share $1.17 $0.04 $0.89 $0.03

66 English Translation of Financial Statements Originally Issued in Chinese Cathay Securities Investment Trust Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars)

2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Current assets $1,880,731 $59,517 $1,681,323 $56,363 $1,677,761 $57,754 Available-for-sale fnancial assets 126,726 4,010 143,232 4,802 128,032 4,407 Held-to-maturity fnancial assets - - - - 200,000 6,885 Investment in debt securities with no active market - - 2,500 84 11,250 387 Investments accounted for using the equity method 279,825 8,855 298,036 9,991 - - Property and equipment 15,699 497 18,466 619 19,952 687 Intangible assets 12,666 401 15,191 509 10,475 361 Deferred tax assets 9,955 315 9,614 322 9,406 324 Other non-current assets 306,818 9,709 277,676 9,309 244,064 8,401 Total assets $2,632,420 $83,304 $2,446,038 $81,999 $2,300,940 $79,206

Liabilities Current liability $290,016 $9,178 $261,437 $8,764 $183,517 $6,317 Other non-current liability 173,112 5,478 152,978 5,128 121,447 4,181 Total liabilities 463,128 14,656 414,415 13,892 304,964 10,498

Stockholders' equity Capital stock 1,500,000 47,468 1,500,000 50,285 1,500,000 51,635 Capital surplus 13,908 440 13,908 466 13,908 479 Retained earnings 636,504 20,143 500,730 16,786 480,079 16,526 Others 18,880 597 16,985 570 1,989 68 Total stockholders' equity 2,169,292 68,648 2,031,623 68,107 1,995,976 68,708 Total liabilities and stockholders' equity $2,632,420 $83,304 $2,446,038 $81,999 $2,300,940 $79,206

Cathay Securities Investment Trust Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Operating income $1,349,944 $42,720 $1,248,468 $41,853 Operating expenses (943,677) (29,863) (907,030) (30,407) Operating gross proft 406,267 12,857 341,438 11,446 Non-operating income and expenses 14,724 466 (12,060) (404) Proft from continuing operations before income tax 420,991 13,323 329,378 11,042 Income tax expenses (75,261) (2,382) (59,862) (2,007) Proft from continuing operations afer income tax 345,730 10,941 269,516 9,035 Net income 345,730 10,941 269,516 9,035 Other comprehensive income (loss) 1,895 60 14,996 503 Total comprehensive income (loss) $347,625 $11,001 $284,512 $9,538

Primary earnings per share $2.30 $0.07 $1.80 $0.06 2014 Annual Report 2014 Annual

67 English Translation of Financial Statements Originally Issued in Chinese Cathay Futures Co., Ltd. Condensed Balance Sheet As of 31 December 2014 and 2013 and as of 1 January 2013 (Expressed in thousands of dollars) 2014.12.31 2013.12.31 2013.1.1 Items NT$ US$ NT$ US$ NT$ US$ Assets Current assets $2,940,798 $93,063 $2,876,356 $96,425 $2,516,674 $86,632 Available-for-sale fnancial assets 245,580 7,771 222,738 7,467 30,500 1,050 Property and equipment 57,507 1,820 59,267 1,987 59,026 2,032 Investment property 285,084 9,022 283,749 9,512 281,347 9,685 Intangible assets 9,242 292 2,212 74 1,311 45 Other non-current assets 168,291 5,326 169,110 5,669 151,316 5,209 Total assets $3,706,502 $117,294 $3,613,432 $121,134 $3,040,174 $104,653

Liabilities Current liability $2,657,908 $84,111 $2,595,410 $87,007 $2,230,012 $76,765 Deferred tax liability 6,253 198 5,736 192 5,794 199 Other non-current liability 1,447 46 1,446 48 1,439 50 Total liabilities 2,665,608 84,355 2,602,592 87,247 2,237,245 77,014

Stockholders' equity Capital stock 650,000 20,569 650,000 21,790 650,000 22,375 Retained earnings 176,462 5,584 170,628 5,720 152,929 5,264 Others 214,432 6,786 190,212 6,377 - - Total stockholders' equity 1,040,894 32,939 1,010,840 33,887 802,929 27,639 Total liabilities and stockholders' equity $3,706,502 $117,294 $3,613,432 $121,134 $3,040,174 $104,653

Cathay Futures Co., Ltd. Condensed Statement of Comprehensive Income For the years ended 31 December 2014 and 2013 (Expressed in thousands of dollars, except earnings per share)

2014.1.1~2014.12.31 2013.1.1~2013.12.31 Items NT$ US$ NT$ US$ Income $138,482 $4,382 $122,151 $4,095 Expenses (148,517) (4,700) (134,691) (4,515) Operating loss (10,035) (318) (12,540) (420) Non-operating income and expenses 47,815 1,514 56,067 1,879 Proft from continuing operations before income tax 37,780 1,196 43,527 1,459 Income tax expenses (4,632) (147) (4,386) (147) Proft from continuing operations afer income tax 33,148 1,049 39,141 1,312 Net income 33,148 1,049 39,141 1,312 Other comprehensive income (loss) 24,220 766 190,212 6,377 Total comprehensive income (loss) $57,368 $1,815 $229,353 $7,689

Primary earnings per share $0.51 $0.02 $0.60 $0.02

68 Integrity, Accountability, Creativity

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